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LIBRARV 

OF   THK 

University  of  California. 

,  GIRT  OK 

Received  YyiCU^-       .  tSg^. 

Accession  No.  (p^y^l^  .   Oass  No.    ^^Lf^'t 

CV37 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/essentialsofbookOOchilrich 


C.W.  CinUs 


ESSENTIALS 


BOOK-KEEPING, 


FOR  PUBLIC  SCHOOLS. 

OP  THR 

SINGLE  AND  DOUBLE  ENTRY, 


FOBMB  AND  EZPLANATIOKB  Or  BUSOnESS  PAPKM 


C.  W.  CHILDS, 

in  CUlforniA  Suta  Nonad  SohooL 
8aa  Joae.  G«l. 


SAN    FRANCISCO: 

THE    BANCROFT    COMPANY. 

1891. 


r>REKACE. 

It  is  cnstomaiy  to  apologize  to  the  public  when  presenting  a 
new  book  for  their  consideration.  The  works  upon  Book-keeping 
already  published  were  made  in  the  East  Our  methods  of 
doing  business  and  our  prices  differ  somewhat  from  the  methods 
and  prices  of  the  East  We  have  consulted  with  book-keepers, 
business  men,  and  prominent  teachers  on  this  coast,  and  believe 
that  this  manual,  the  product  of  our  experience  and  consulta- 
tions, will  be  found  better  suited  to  the  wants  of  our  public 
schools  than  other  similar  works. 

Single  Entry  Book-keeping  is  extensively  used  on  this  coast, 
consequently,  considerable  space  is  given  to  this  system  of 
book-keeping.  Our  examples  and  forms  are  taken,  in  many 
instances,  directly  from  the  books  of  merchants  m  the  busmess 
centers  of  this  State,  and  are,  therefore,  eminently  practical. 

More  attention  than  usual  has  been  given  to  the  forms  and 
use  of  business  papers,  as  many  have  little  opportunity  of 
acquiring  such  knowledge  except  by  an  experience  that  may 
come  too  late  to  prevent  errors,  and  even  serious  loss. 


Copyright  by  The  Bancroft  Company,  1888. 


CONTENTS. 


Suggestions  to  Teachers 4 

PART  I.-SINGLE  ENTRY. 

Characters  and  Abbreviations  used  in  Book-keeping 6 

Book-keeping 7 

Definitions  of  Single  Entry  Books 8 

Diagram  showing  the  Relation  of  the  various  Books  to  one  another 9 

Explanation  of  Terms  used 10 

Cash  Book  Accounts 11 

Cash  Book  Examples 12 

Review  Questions  on  Cash  Book 13 

Ledger  Accounts 14 

Reviews  and  Suggestions 16 

The  Day  Book 16 

Day  Book  Accounts 17 

Model  Set  1 18 

Instructions  for  Opening  and  Closing  a  Set  of  Single  Entry  Books 24 

Suggestions  and  Reviews 25 

Model  S.  t  II ^. 26 

Commercial  Terms  . .  .*. 32 

Business  Paper.    34 

Business  Forms 34 

Questions  for  Reviews,  on  Business  Forms 48 

General  Review  Questions 50 

Exercises  for  the  Student 62 

Model  Set  III   67 

Special  Remarks  in  the  Ledger 74 

4  PART  II.— DOUBLE  ENTRY. 

Double  Entry. 77 

Double  Entry  Books 78 

Principles  and  Rules 80 

Rules  for  J  oumalizing .  88 

Lost  Accounts  and  Notes 86 

Change  of  Single  Entry  to  Double  Entry 87 

Diagram  for  Blackboard 89 

Examples  of  Journalizing 90 

Model  Set  1 93 

Model  Set  II ; . . . .  97 

Model  Set  III 107 

Review  Questions 1 17 

Exercises  for  the  Student 120 

Model  Set  IV 136 

Balance  Sheet 146 

Exercises  for  the  Student 147 

KEY  TO  EXERCISES  FOR  THE  STUDENT. 

Key  to  Exercises  in  Part  I 153 

Key  to  Exercises  in  Part  II 166 

3 


SUGGESTIONS  TO  TEACHEES. 

L  Book-keeping  is  very  simple  and  easy  of  comprehension^ 
and  my  aim  has  been  to  present  every  point  clearly  and  dis- 
tinctly, while  giWng  the  student  only  the  essential  points  of  the 
subject  to  study. 

2.  A  Cash  Account  presents  the  elementary  ideas  of  the 
office  of  an  account;  therefore,  it  is  made  the  first  step  in  the 
student's  progress.  The  teacher  should  be  satisfied  that  his 
class  is  perfectly  familiar  with  this  account  before  commencing 
the  study  of  the  Ledger. 

3.  At  first,  let  the  student  use  loose  paper  and  rule  his  own 
forms;  but,  in  order  to  acquire  habits  of  accuracy  and  neat- 
ness, he  must  copy  carefully  all  the  important  part  of  his  work 
in  proper  blank  books. 

4.  As  red  ink  is  apt  to  become  a  nuisance  in  the  ^chool-room, 
I  suggest  that  a  hard  lead-pencil  be  used  to  rule  lines  and  to 
write  all  words  or  phrases  usually  written  with  red  ink.  Let 
the  pencil  mark  stand  for  red  ink. 

5.  Students  should  not  be  required  to  memorize  definitions 
and  technical  terms  before  they  are  called  to  use  them.  Use 
the  review  questions,  and  others  that  may  suggest  themselves 
to  you,  at  any  seasonable  time 

6.  Li  order  to  comprehend  fully  how  and  when  to  use  the 
various  forms  of  "business  paper,"  the  student  should  write 
out  notes,  orders,  receipts,  bills,  etc.,  at  the  time  these  papers 
are  mentioned  in  the  "sef 

7.  Capitalization,  punctuation,  and  business  penmanship  should 
receive  considerable  attention,  and  the  blackboard  should  be  made 
the  auxiliary  of  the  text-book  in  teaching  book-keeping  and 
writing. 


PAET  I. 


SII^GLE  EJSTTEY, 


CHAEACTERS   AND   ABBREVIATIONS   USED   IN 
BOOK-KEEPING. 


# At  or  to. 

^ Aooount. 

% Percent. 

^ Namber. 

V One  and  one^foortli. 

1* One  and  one-hall. 


OHARACTEBS. 

1' One  and  three-fourths. 

V Check  Mark. 

$  Dollan. 

f  CentB. 

£ Pound  Sterling. 

X By,  aa  8x11. 


fi Ponnda,  Gallons,  Yards,  Dozens,  and  Feet. 

phfiB^Thta  ehanetw  wbucrar  llabl*  to  b«  BlaoadMatood,  is  rqitaotd  in  this 
text-book  bj  lb*  vmal  eooToatloaAl  slga.] 

ABBRETIATIOMS. 


A  1 First  Claas. 

Aec\  or  <)b>  •••Aooount. 

Ami Amount 

A^ Agent 

Aitg August 

Ha/ Balance. 

B.B Bill  Book. 

BoX Bought 

Brtfi Brought 

B.P Bills  Payable. 

B.B Bills  ReceivaUau 

BHA Barrel 

C.  or  CttUwm.  .Hundred. 

C,B Cash  Book. 

Co C<Mnpany. 

CO,  D Collect  on  DeliToy. 

Cr Creditor. 

CoPdL Colored. 

JH Days. 

D.  B Day  Book. 

J>r Debtor. 

Do.  (DUto). . .  .The  Same. 

Dos Dosen. 

J>ft Draft 

E.  B Errors  Excepted. 

Exck Exchange. 

Exp Expenses. 

Pol Folio. 

Fh Freight 

Fwd Forward. 


Qal Qalloo. 

Ilhd Hogsheftd. 

Hdlf Handkerchief. 

Int Interest 

Invt Inventory. 

Ifofi Investment 

In» Insurance. 

Inv Invoice. 

I,  B Invoice  Book. 

Inat InsUnt  (this  Mo.) 

Jan. January. 

J,  P Journal  Page. 

IA>» Pounds. 

L.P ...  Ledger  Page. 

Ar<i«e Merchandise. 

M.  B Memorandum  Book. 

No Number. 

Pr Pair. 

Pernor  ^ By. 

P.A  L Profit  and  Loaa. 

Rec'd Received. 

R,R Railroad. 

8.B Sales  Book. 

Sir Steamer. 

Svmdt Sundries. 

UU Ultimo  (last  Mo.) 

Viz, Namely. 

V$ Against 

X Extra. 

Tr Year. 


ft 


BOOK-KEEPING. 


1.  Book-keeping  is  the  science  of  accounts,  and  teaches  ho"w 
to  record  business  transactions  in  a  systematic  manner. 

2.  Book-keeping  is  of  two  kinds — Single  Entry  and  Double 
Entry  . 

3.  In  Single  Entry  we  make  an  entry  only  when  a  per- 
sonal account  is  affected,  at  which  time  we  charge  or  credit 
the  person — making  an  entry  to  only  one  account — hence  single 
entry. 

4.  In  Double  Entry  every  Dusmess  transaction  is  entered 
in  two  or  more  accounts,  according  to  the  number  affected  by 
the  transaction.  Every  time  we  debit  an  account  with  an  item, 
we  credit  some  other  account  for  the  sajne  amount — hence, 
double  entry. 

5.  An  Account  is  a  collection  of  items  under  one  heading 
in  the  Ledger. 

6.  A  Personal  Account  is  an  account  with  a  person,  firm 
or  corporation. 

7.  A  Transaction  is  any  business  operation;  as,  a  purchase, 
a  sale,  or  an  agreement  between  two  or  more  persons. 

8.  An  Entry  is  the  memorandum  or  written  statement  of 
a  transaction.  An  original  entry  is  the  first  entry  of  a  trans- 
action. 

9.  Two  libids  of  books  are  used  in  book-keeping — Principal, 
and  Auxiliary  or  Aid  books. 

10.  The  Ledger,  and  all  books  containing  accounts  which 
are  to  be  transferred  directly  to  the  Ledger,  may  be  called 
Principal  books.  The  Day  Book  or  Journal,  Cash  Book,  and 
sometimes  Sales  Book  and  Invoice  Book,  contain  an  account 
of  transactions  that  are  to  be  carried  directly  to  the  Ledger. 

7 


DEFINITION  OF  SINGLE  ENTRY  BOOKS. 

The  nmuber  of  Books  required  to  conduct  a  business  in  either 
Single  or  Double  Entry,  and  the  particular  mode  of  keeping 
the  accounts  must  depend  upon  the  nature  and  extent  of  the 
business.  Single  Entry  is  chiefly  used  when  the  business  is 
limited,  and  the  transactions  are  of  a  simple  character.  The 
following  list  of  books  comprises  all  that  are  usually  used  in 
Single  Entry:  Day  Book,  Ledger,  Cash  Book,  Invoice  Book, 
Sales  Book. 

Day  Book. — ^This  book  usually  contains  statements  of  all 
the  transactions  in  our  business  which  give  rise  to  persons' 
owing  us,  or  to  our  owing  them.  The  date  of  the  transaction, 
the  name  of  the  party,  and  a  description  of  the  ^^ values^' 
received  or  given,  must  be  recorded  with  the  utmost  precision. 

The  Ledger. — This  book  is  the  great  reservoir  of  accounts. 
Into  it  flow  all  the  debits  and  credits  of  the  business.  Its  con- 
tents are  usually  made  up  from  the  Day  Book.  Some  book- 
keepers, however,  post  directly  from  the  Invoice,  Sales  and 
Cash  Books  to  the  Ledger.  The  Ledger  enables  us  to  see,  at 
one  view,  all  that  a  person  owes  us,  and  all  that  we  owe  him. 

Gash  Book. — This  book  contains  an  account  of  all  cash 
received  or  paid.  The  entries  should  be  made  in  it  at  or  near 
the  time  of  the  transaction. 

LlTlrfce  Book. — This  book  contains  a  minute  description  of 
all  the  merchandise  bought  or  received.  Copies  are  made  in 
this  book  from  the  bills  of  goods  purchased.  The  most  con- 
venient way  of  keeping  an  Invoice  Book  is  to  paste  the  bills 
received  into  a  book  prepared  for  that  purpose.  The  amounts 
of  each  page  should  be  added  and  carried  forward. 

Sales  Book. — This  book  contains  a  description  of  the  mer- 
chandise we  seU  or  pass  out  of  our  possession.  As  the  pur- 
chaser selects  his  goods,  they  are  entered  in  the  Sales  Book, 
from  which  entry  his  bill  is  made  out  The  amounts  of  each 
page  should  be  added  and  carried  forward. 

Bill  Book. — This  book  contains  a  description  of  all  the  notes, 
drafts,  and  other  species  of  negotiable  paper  held  by  or  against 
us.  Negotiable  paper  in  our  favor,  is  classed  under  the  head 
of  Bills  Receivable,  and  that  against  us,  under  the  head  of 
Bills  Payable. 

• 


DIAGRAM  SHOWma  THE  RELATION  OF  THE 
VARIOUS  BOOKS  TO  ONE  ANOTHER. 

Some  book-keepers  post  directly  from  the  Invoice,  Sales,  and  Cash  Books 
to  the  Ledger.  If  posting  only  from  the  Day  Book,  all  business  transactions 
requiring  an  entry  in  the  Ledger,  must  first  appear  in  the  Day  Book. 


DAT  BOOK. 


INVOICE  BK. 


V« 


< 


'"Sht' 


M 


BILL  BOOK. 


§.^ 


^<V</ 


L.EDGKR. 


'■l 


li 

c  c 

? 


•^A 


\^' 


V. 


0^ 


BALANCE  SHEET. 


Put  all  Resources 
on  the  Dr.  side,  all 
Liabilities  on  the 
Cr.  aide. 


«. 


%. 


SALES  BOOK. 


CASH  BOOK. 


WO 

E-g 


EXPLANATION  OF  TEEMS  USED. 

Whenever  one  person  receives  anjrthing  from  another,  which 
he  does  not  pay  for  at  the  time,  he  is  said  to  go  in  debt  for 
it^  and  he  is  called  a  Debtor,  and,  in  book-keeping,  he  is  debited 
for  the  amonnt.  To  debit  means  to  charge  with  the  amount 
of  the  indebtedness  incurred. 

A  person  who  sells  property  without  receiving  his  pay  at 
the  time,  is  said  to  give  credit  for  it>  and  he  is  called  a  Creditor, 
and,  in  book-keeping,  he  is  credited  for  the  amount. 

The  buyer  on  <J^  is  always  the  Debtor,  and  the  seller  on  <Jfe 
is  always  the  Creditor.  In  keeping  accounts  it  is  customary, 
and  more  convenient^  to  abridge  and  write  Dr.  for  Debtor,  and 
Cr.  for  Creditor. 

The  word  To  is  .used  oh  the  Dr.  side  of  an  account,  and 
indicates  indebtedness  to  us  from  the  person  named  in  the 
aooount 

The  word  Bjf  is  used  on  the  Cr.  side  of  an  account  and 
indicates  indebtedness  5y  us  to  the  person  named  in  the  account. 

Any  kind  of  value  belonging  to  us  is  called  a  resource^  and 
any  debit  owed  by  us  is  called  a  liability. 

All  written  or  printed  obligations  of  whatever  form — usually 
notes  and  drafts — not  payable  at  sight,  in  our  possession,  for 
which  a  certain  specified  amount  is  to  be  received,  are  called 
Bills  Receivable. 

All  written  or  printed  obligations  of  whatever  kind — usually 
notes  and  drafts — not  payable  at  sight,  for  which  a  specified 
amount  is  to  be  paid  by  us,  are  called  Bills  Payable. 

An  Invoice  is  a  bill  of  merchandise  in  which  all  the  articles 
are  enumerated,  with  the  price  of  each  article. 

An  Inventory  is  a  schedule  of  imsold  articles  or  goods,  esti- 
mated at  their  known  cash  value. 

Cash  is  a  term  applied  to  coin  and  to  all  business  paper  pay- 
able at  sight;  as  Bank  Notes,  Checks,  Drafts,  P.  O.  Orders,  etc 

The  Balance  of  an  account  is  the  excess  of  one  money  col- 
umn over  the  other. 

Footing  Lines  are  the  single  lines,  usually  drawn  with  red 
ink,  under  the  money  columns  to  be  added. 

Closing  Lines  are  the  double  lines,  usually  drawn  with 
red  ink  under  an  account,  when  the  accoimt  is  closed. 

10 


CASH  BOOK  ACCOUNTS. 

Dealers  that  never  give  any  credit  require  but  one  booli; 
and  that  is  the  Cash  Book.  Receiving  credit  is  of  no  conse. 
quence  in  book-keeping  if  none  be  given.  As  this  book  is  the 
hey  book  of  all  the  others,  we  shall  commence  with  it. 

Business  men  attach  much  importance  to  the  Cash  Account, 
as  it  is  a  check  against  improper  payments,  and  omissions  and 
erroneous  entries  in  other  books.  Every  person  should  keep  a 
Cash  Book.  It  is  customary  in  actual  business  to  balance  this 
account  daily,  but  the  student  may  balance  weekly  or  monthly 
as  he  chooses. 

It  would  aid  the  beginner  if  he  would  look  upon  "Cash"  as 
a  person.  When  money  is  received  or  paid  in.  Cash  is  debited 
because  it  passes  into  Cash's  hands;  and  when  money  is  paid 
out  Cash  is  credited,  because  Cash  supplies  the  money  that 
makes  the  payment. 

The  left-hand  column  is  for  cash  received,  or  "Cash  Dr.;" 
the  right-hand  column  is  for  cash  paid  out,  or  "Cash  Cr." 
Enter  in  the  left-hand  column  the  cash  on  hand  and  eVery 
receipt  of  cash,  and  enter  in  the  right-hand  column  every  cash 
payment. 

When  you  wish  to  "balance''  or  close  your  Cash  Account, 
add  the  money  columns,  subtract  the  total  payments  from  the 
total  receipts,  and  enter  the  balance  in  red  ink  in  the  nght- 
hand  column.  Draw  your  closing  lines,  and  bring  down  under 
the  left  hand  column,  in  black  ink,  this  balance,  which  is  the 
cash  on  hand  for  the  continuation  of  business. 

The  following  cash  transactions  wiU  Ulustrate  fully  the 
method  of  keeping  a  Single  Entry  Cash  Book: 

(John^s  Cash  Account.) — Jan.  1,  1883.  Cash  from  father. 
$3.50.  Jan.  2.  Paid  50^  for  a  slate,  and  75^  for  stationery. 
Jan.  6.  Received  $1.50  for  three  days'  work  storing  wood. 
Jan.  8.  Paid  $1.25  subscription  to  Youth's  Companion.  Jan. 
10.    Received  $1.25  for  a  doz.  quail.    Jan.  13.    Paid  $1.10  for  a 

hat.    Jan.  15.    Balanced  my  account  and  find  $ on  hand 

Jan.  18.  Received  $2.75  for  hauling  fruit  to  market.  Jan.  20. 
Paid  75^  for  ammunition.  Jan.  22.  Paid  $1  for  Milne's 
arithmetic.      Jan.   25.      Received  $2   for   cleaning   yard  ^ 

11 


CASH  BOOK  ACCOUNTS. 

26.  Paid  $1.50  for  Ldfe  of  Columbus.  Jan.  27.  Received  75^ 
for  six  pigeons.  Jan.  28.  Paid  60^  for  repairing  shoes.  Jan. 
Balance  on  hand,  $ 


30. 


CASH, 


Db. 


m 


Amoant  on  liand . 

Paid  for  SUt«  and  Stationery 

61  Received  for  3  da.  Labor 

8  Paid  Sab.  to  YouUr*  Compaaioa. . 

10  ReoeiTed  for  a  dos.  Qnail 

13  Paid  for  a  Hat 

lA  Balance 


Jaa.15 
18 


JaB.M 


Amoont  on 
Reoeired  for  Hauling  Fruit 
Paid  for  Ammunition ... 

Paid  for  an  Arith 

Received  for  Cleaning  Yard . 
Paid  for  Life  of  Colnmbna . . 

Received  for  6  Pigeons 

Fud  for  Repairing  Shoes. . . , 

Balamee 


Amount  on  hand , 


350 
50 


625 


25 


286 
276 


200 

75 


815 


430 


125 

25 


10 

£65 


76 
00 

50 


4  SO 
8l6 


CASH   BOOK  EXAMPLES. 

The  following  sets  of  accounts  should  be  written  in  Cash 
Book  form  by  the  student — ^using  the  form  on  this  page  for  the 
first  set^  and  the  form  on  pages  22  and  23  for  the  others: 

{School  Boy's  Atc't.)  Aug.  1.  Cash  on  hand,  $44.50.  2.  Paid 
$6.80  for  set  of  school  books.  3.  Paid  75^  for  stationery.  4. 
Paid  50^  for  car  tickets.  5.  Paid  $5  for  board.  8.  Rec'd 
$1..''>0  for  picking  fruit.  9.  Paid  laundry  bill,  75f  10.  Paid 
for  refreshments  at  a  festival,  $1.25.  12.  Paid  $5  for  board. 
13.    Rec'd  $2  for   picking  fruit.     14.    Paid   laundry  bill,  90^. 

15.   Balanced  acct  and  find  $ on  hand.     16.   Paid  50^  for 

stamps.     18.  Paid  $10.80  for  clothing.     20.   Paid  $5  for  board. 

12 


CASH  BOOK  ACCOUNTS. 

22.  Rec'd  $20  from  home.  24.  Paid  $1.20  for  laundry  bilL 
25.  Paid  80^  for  pleasure  trip.  27.  Paid  $5  for  board.  28. 
Paid  $1.25  for  books.  29.  Paid  $2.75  for  shoes.  31.  Balance 
the  acicoimts. 

(BlacUmiWs  Acc'tJ  Sept.  1.  Cash  on  hand,  $75.80.  2.  Paid 
for  iron,  $23.10.  3.  Rec'd  for  shoeing  horses,  $2.50.  4.  Paid 
for  stock  of  wood,  $18.50.  5.  Rec'd  for  repairs  on  wagon,  $3.20. 
6.  Rec'd  for  repairing  plow,  $1.50.  8.  Paid  $3.25  for  coal.  9. 
Rec'd  $9.50  for  making  harrow.  10.  Paid  $11.50  for  groceries. 
11.  Rec'd  $4.50  for  shoeing  horses.  12.  Rec'd  $10  of  Ira 
Parker  on  ^.  15.  Paid  laundry  bill,  $4.10.  16.  Rec'd  $5.50 
/or  labor.  i8.  Rec'd  $12.50  of  Calvin  Webster  in  fuU  of  <^. 
20.  Rec'd  $2.80  for  labor.  22.  Paid  $10  for  groceries.  23. 
Rec'd  $8.50  of  J.  H.  Brady  on  ^.  24.  Paid  for  fruit,  $3.50. 
25.  Rec'd  for  labor,  $3.25.  28.  Rec'd  for  labor,  $2.75.  30. 
Balance  on  hand,  $ 

(Retail  Merchanfs  Ac&t.J  Oct.  1.  Cash  on  hand,  $1,840.25. 
2.  Paid  for  butter,  $10.20.  3.  Paid  for  stationery,  $6.25.  4. 
Paid  A.  Waldteufel  $12.50,  for  Acc't  Books.  5.  Rec'd  for  sales, 
$125.  6.  Paid  for  carriage  hire,  $4.50.  6.  Paid  clerk's  salary, 
$50.  8.  Rec'd  of  J.  G.  Kennedy,  on  ^^.,  $16.80.  9.  Paid  gas 
bill,  $5.60.  10.  Paid  for  Mdse.,  $240.  11.  Rec'd  for  sales, 
$110.40.  12.  Paid  for  repairing  store,  $23.75.  13.  Rec'd  of 
Ira  More,  on  <}^,  $20.  14.  Paid  $12.50  for  coal.  16.  Paid 
clerk's  salary,  $50.  18.  Paid  for  rent  of  store,  $70.  19.  Rec'd 
for  sales,  $96.10.  20.  Paid  for  clothing,  $28.50.  21.  Paid  for 
merchandise,  $110.80.  23.  Paid  for  dray  age,  $16.40.  24.  Rec'd 
of  Luella  Gillespie  on  (^,  $23.80.  25.  Paid  Bancroft  &  Co. 
for  books,  $10.20.  28.  Paid  for  hay,  $12.  30.  Balance  on 
hand,  $ 

RKVTEW    QUESTIONS    ON    CASH    BOOK. 

Define  Cash.  State  reasons  for  keeping  a  Cash  Book.  Draw 
a  Cash  Book  form  on  the  blackboard,  and  explain  the  use  of 
the  various  columns.  On  which  side  are  Cash  receipts  entered, 
and  whyt  What  is  meant  by  "balancing  the  Cash  Book?" 
When  and  why  is  the  Cash  Book  balanced?  State  the  use  of 
red  ink  in  balancing.     Why  is  red  ink  used? 

13 


LEDGER  ACCOUNTS. 

As  has  been  stated,  the  Ledger  is  the  principal  book.  When 
business  transactions  are  few  and  simple,  as  with  the  farmer 
and  tiie  mechanic,  the  Ledger  may  be  made  the  only  book  of 
accounts. 

Each  page,  or  folio,  of  the  Ledger  is  divided  into  two  parts 
from  top  to  bottom.  The  left-hand  division  is  always  the  debit 
side,  and  the  right-hand  division  the  credit  side  of  the  account. 
When  the  Ledger  is  the  only  book  kept)  it  is  best  to  use  a 
double-page  Ledger,  in  which  the  left-hand  page  is  the  Dr. 
side,  and  the  right-hand  one  the  Or.  side  of  the  account. 

Study  the  following  examples  and  forms  carefully,  and  then 
write  the  examples  on  pages  15  and  16  in  Ledger  form, — using 
single  folio  for  the  first,  and  double  folio  for  the  others. 

(A  Farmer's  Act^i  with  a  Hired  Man.)  May  1st,  1883.  John 
Edwanls  has  worked  one  month,  @  $30  per  month.  10th.  Paid 
Edwards  $12.  11th.  Let  him  have  4  centals  wheat,  @  $1.40 
per  C.  14th.  Paid  him  $10.  15th.  Credit  him  with  two  weeks' 
work,  $15. 

(An  Acct  with  a  ^Yheat  FieidJ  Jan.  1st,  '83.  Debit  the  field 
with  9  days'  plowing,  @  $3  per  day.  5th.  3  days'  harrowing, 
(^  $2.25  per  day.  8ih.  22  centals  of  seed  wheat,  @  $1.60  per 
C.  13th.  2  days'  work  sowing,  @  $2  per  day.  18th.  Harrow- 
ing 4  days,  @  $3.  June  20th.  Expense  of  harvesting  and 
threshing,  $70.  28th.  Expense  of  marketing,  $15.50.  28th. 
Credit  the  field  with  cash  for  324  centals  of  wheat,  @  $1.70 
per  C.  30th.  Sold  the  straw  and  stubble  for  $35.  July  1st. 
Debit  the  field  witli  the  interest  on  value  of  18  acres,  $1800 
at  7%,  $ What  has  been  my  profit  on  the  field! 


JORy  EBWAMBS. 


1883 
Mmy 


DMh 

4  a  Wheat,  @  $1.40. 

Cash 

Balcmee 


1883 
Blay 


500 

10 
1740 


46 


1  Month's  Work. 
1        <«  **     . 


Mayjiai        Balance. 


30 
15 


45 


1740 


14 


LEDGER  ACCOUNTS. 


WHEAT  FIELD,     (is  Acres.) 


1883 
Jan. 


Jnn. 


July 


9  Days*  Plowing 

3      "     Harrowing 

22  C.  Wheat 

Sowing  Wheat 

Harrowing 

Expense  of  Harvesting  and 
Threshing 

Expense  of  Marketing. . 

Interest  on  Land 

Balimce  {Gakum  FUd).. 


Il883 
OOlJun. 


35201 

400(1 

12000 


Gash 


55080 
3500 


58580 


(An  Acdt  with  a  Barley  Field.)  Jan.  30,  '82.  Plowed  the 
field  of  40  acres  at  a  cost  of  $1.75  per  acre.  Feb.  15.  Fur- 
nished 4,800  lbs.  seed  barley,  @  $1.50  per  C.  16th.  Sowed  the 
field  at  a  cost  of  $6.  18th.  Paid  40^  an  acre  for  harrowing. 
July  2.  Harvested  the  barley  at  a  cost  of  $1.50  per  acre.  25th. 
Paid  18^  per  C.  for  threshing  and  sacking  1,050  centals.  Aug. 
1.  Stored  the  barley  until  Oct.  1,  at  a  cost  of  2^  per  C.  per 
month;  cost  of  hauling  barley  to  warehouse,  $15.  Oct.  1.  Sold 
the  barley  for  $1.80  per  C.     Value  of  the  straw  and  stubble,  $45. 

Interest  on  value  of  40  acres  at  $75  per  acre,  @   8%,$ 

What  has  been  my  profit  on  the  field! 

(A  Carpenter's  Ac(?t  tcith  a  Farmer.)  June  30,  '82.  Worked 
for  the  farmer,  Henry  A.  Gordon,  6  days  @  $2.50  per  day. 
10th.  Rec'd  cash  $8.50.  16th.  Repaired  bam  and  charged  $16 
20th.  Rec'd  300  lbs.  potatoes,®  IJ^  per  lb.  28th.  Repaired 
fence  and  charged  $8.75.  July  8th.  Rec'd  cash,  $10.  15th. 
Rec'd  vegetables  valued  at  $2.75.  30th.  Repaired  tools  and 
charged  $7.75.  Aug.  10.  Rec'd  cash,  $15.  20th.  Worked  on 
fence  5  days,  @  $2.50  per  day.  22d.  Rec'd  cash,  $10.50.  24th. 
Rec'd  20  lbs.  bacon,  @  15^  per  lb.  28th.  Charged  him  with  5 
days'  work  on  house,  @  $3  per  day.  Sept.  5.  Worked  3J  days 
on  barn,  @  $3  per  day.  12th.  Rec'd  cash,  $6.50.  13th.  Rec'd 
18  lbs.  ham,  @  20^  per  lb.  20th.  Worked  three  days  repair- 
ing gates,  @  $2.50  per  day.  26th.  Rec'd  cash,  $5.50.  Balance 
the  account  Sept.  30th,  and  bring  down  the  balance. 

X5 


LEDGER  ACCOUNTS. 

(A  Farmer's  Ac&t  with  a  Laborer.)  March  5,  '83.  Peter  B 
Cooper  worked  for  me  3  days,  plowing,  @  $1.50  per  day. 
10.  Sold  him  25  f/i  bacon,  @  16^.  12.  He  has  plowed  for  me 
8  days,  @  $1.50  per  day.  13.  Paid  him  cash,  $5.50.  14. 
Let  him  have  200  ;^  potatoes,  @  14^.  15.  He  has  ditched  for 
me  3  days,  @  $1.75  per  day.    20.  BaL  $ 

BJEVUCWB  Am>  SUOGSSnOllS. 

Prepare  similar  accounts  and  let  students  assist  in  making 
them.  Require  the  students  to  draw  a  Ledger  form  on  the 
blackboard  and  explain  tlie  use  of  the  various  columns.  What  is 
meant  by  opening  an  account?  By  closing  an  account?  What 
18  an  account!  What  is  shown  by  the  Dr.  side  of  an  acc'tT 
The  Or.  side  of  an  acc'tf  What  is  the  difference  between  the 
Dr.  and  the  Cr.  side  called?  On  which  side  is  the  difference 
placed,  and  why?  When  and  why  is  an  acc*t  closed?  When 
and  why  is  the  balance  brought  down  ?  What  use  is  made  of 
red  ink  in  closing? 


THE  DAY  BOOK. 


If  you  do  an  extensive  credit  business,  a  book  of  consecutive 
record,  giving  a  plain  and  simple  account  of  the  business  as 
it  progresses  day  by  day,  will  be  of  essential  service;  and 
merchants  usually  keep  a  Day  Book  or  "  Blotter,"  as  it  is  some- 
times called,  in  which  are  entered  transactions  as  they  occur. 
These  transactions  are  then  transferred  to  the  Ledger.  This 
is  called  posting. 

The  date  in  the  Day  Book  is  kept  in  the  middle  of  the  page, 
and  the  left-hand  columns  are  used  for  '^checking,"  and  for 
entering  the  number  of  the  Ledger  page  to  which  the  entry 
is  posted. 

Remember  that  if  you  post  only  from  the  Day  Book,  all  busi- 
ness transactions  requiring  an  entry  in  the  Ledger  must  first 
appear  in  the  Day  Book;  such  as  cash  paid  or  received  on 
account;  notes  or  other  business  paper  given  or  received  on 
aooount;  Mdse.  bought  or  sold  on  account,  or  partly  paid  for 
at  the  time. 

ib 


OP  tTiF 


'^^CAUFORH\^        ' 


DAY  BOOK  ACCOUNTS. 


The  following  Day  Book  form  should  be  carefully  examined 
by  the  student,  and  the  examples  given  be  written  in  proper 
form: 

San  Jose,  Jan.  1,  1883.  Sold  Horace  Crocker,  on  ^,  20  j!ff 
bacon,  @  16^;  25;^  sugar,  @  13^;  50  ^  potatoes,  @  IJf 
Jan.  2.  Sold  Geo.  S.  Wells,  on  %  300;^  of  flour,  @  $3  per 
C;  50;!^  dried  peaches,  @  15^  j  rec'd  cash,  on  <%,  $10.  Jan. 
5.  Rec'd  cash  on  acc't  of  Horace  Crocker,  $5.50.  Jan.  6.  Bo^t 
of  Farmers'  Union,  on  ^,  148  jj^  sugar,  @  12f^ ;  paid  cash  on 
acc^,  $15.  Jan.  10.  Credit  Henry  Bailey  with  five  days'  work, 
@  $2.  Jan.  15.  Bo't  of  W.  0.  Blodget,  on  %  150  ]jC  dried 
prunes,  @  10^;  200;^  dried  apples,  @  6^j  paid  him  cash,  on 
acc't,  $10. 

SAK  JOSE,  January  1,  188S. 


Horace  Cbockkb, 
20  y  Bacon, 
25  ^  Sugar, 
50  fj:  Potatoes, 

Geo.  S.  Wklls, 
300  ff  Flour, 
60  ;f?  Dried  Peaches, 


Dr. 


16^. 


Dr. 


$3perC. 
\5f 


Cash. 


Cr. 
5. 


Horace  Crocker, 
Cash 


Cr. 


Farmers'  Union, 
148  ff  Sugar, 


Cr. 


@l2f. 


Cash. 


Henry  Bailey, 
5  ds..  Work, 

W.  0.  Blodget, 

150  y  Dried  Prunes, 
200  y      ••      Apples, 

Cash 


Dr, 
10. 

15. 

Dr. 


Cr. 


@|2. 


Cr. 


10^ 


5C 


20 

1650 
10 

550 

17  7C 
16 

10 

27 
10 


17 


DAY  BOOK  ACCOUNTS. 

Sacramento,  Oct.  Ist,  1882.  Sold  (use  the  name  of  a  student), 
on  <Jfr,  28;^  of  sheeting,  ®  8i^j  2  pr.  shoes,  @  $1.40;  15  ;fr 
cambric,  @  10^.  Oct  2d.  Bought  of  (student),  on  %  20  fjl  but- 
ter, @  30^;  124  ;Jf  cheese,  @  20^.  3d.  Rec»d  cash  on  acc't  of 
(student),  $5.00.  4th.  Sold  (student),  on  <5fe,  4  j^  eggs,  @  30^  j 
10  #  lard,  @  20^;  12  #  coflfee,  ®  25f;  rec^d  cash,  $2.50.  5th. 
Bought  of  (student),  on  <)fc,  300  ;Jf  dried  apples,  6^;  200  /f  dried 
prunes,  @  10v*j  paid  cash,  $20.  6th.  Sold  (student)  50;ff  flour, 
%  $4.50,  and  received  his  note  at  60  ds.,  for  $125;  balance  on 
acc^  8th.  Loaned  (student)  $20.  9th.  Gave  our  clerk  (student) 
an  order  on  (student  of  6th  inst.)  for  $25.  10th.  Rec'd  an  order 
from  (student  of  2d  inst)  requesting  us  to  let  (student  No.  4) 
have  $20  worth  of  Mdse.  (write  the  order;  for  form,  see  p.  42, 
No.  24).  In  the  9th,  debit  our  clerk  and  credit  student;  and 
in  10th,  debit  student  of  2d  inst.  Give  reasons  for  these  debits 
and  credits. 


MODEL  SET  L 


San  Francisco,  Aug.  1,  1883.  Frank  Whitby  commenced 
business  this  day  with  the  following  resources  and  liabilities: 
Mdse.y  as  per  Invt.,  $750;  cashj  $850.50.  He  owes  Nathan  Frank, 
$150  OH  acf't 

Aug.  2.  Sold  Frank  Merrill,  on  %  3  gal.  N.  O.  molasses, 
@  85^;  2  gaL  linseed  oil,  @  60^.  Aug.  3.  Bo't  of  Essie  Smith, 
on  <Jf:,  200#  dried  prunes,  @  10?;  75  #  dried  apples,  @  6?; 
sold  Essie  Smith,  on  <}f;,  50  ;Jf  sugar,  @  12i?.  Aug.  4.  Paid 
Nathan  Frank  cash,  on  %  $50.  Aug.  5.  Sold  Wm.  Roberts, 
on  %  300 /^  flour,  @  $3.50  per  C;  150^  potatoes,  @  IJ?; 
rec'd  cash,  on  <5fc,  $5.  Aug.  6.  Sold  Calvin  Webster,  on  <Jfe, 
iWO  centals  wheat,  @  $1.60;  rec'd  his  note  at  30  ds.,  for  $300; 
balance  on  acc't.  Aug.  7.  Charged  Frank  Whitby,  on  private 
acc^t,  for  groceries  to  date,  $42.50.  Aug.  8.  Rec'd  of  Calvin 
Webster  cash,  on  <)fc,  $50.  Aug.  9.  Sold  William  Roberts,  on 
«^,  140  ;Jf  sugar,  @  11^?.  Aug.  10.  Accepted  Nathan  Frank's 
draft,  at  10  ds.,  for  balance  due  him  to  date.  Aug.  12.  Took 
Invt;  Mdse.  unsold,  $275. 

18 


Set  L] 


DAY  BOOK. 

SAN  FRANCISCO,  August  U  188S. 

Frank  Whitby,  Cr. 

•     Cash,  invested 

Mdse.,      •♦       

Dr. 

Amt.  due  Nathan  Frank 

// 
Nathan  Frank,                                                       Cr. 
Balance  due  him 

2. 

Frank  Merrill,  Ih-. 

3  ;^  N.  O.  Molaaset,  @  85^ 

2  ff  Linseed  Oil,  60< 

3. 

Essie  Smith,  Cr. 

200  ff  Dried  Prunes,  @  10^ 

Ibfji        "       Apples,  tf 

Dr. 
50;^:  Sugar,  ®  12J^ 

4. 
Nathan  Frank,                                                      Dr. 
Cash,  on  <% 

5. 

William  Roberts,  Dr. 

300  ff  Flour,  @  $3.60  per  C . . 

\5Qff  Potetoes,  li^ 

Cr. 
Cash,  on  ^ 

6. 

Calvin  Webster,  Dr. 

300  Centals  Wheat,  @  $1.60 

Cr. 
Note,  at  30  ds 

7. 

Frank  Whitby,                                                         Dr. 
Groceries,  to  date 

8. 

Calvin  Webster,                                                   Cr. 
Cash,  on  ^ 

9. 

William  Roberts,                                                    Dr. 
140  ;K  Sugar,  @  11^^ 

10. 

Nathan  Frank,                                                       Dr. 
Accepted  his  draft,  at  10  ds, 

19 


20 

20 
20 

20 
20 

20 
20 

20 

20 
20 

20 
20 

20 

20 

20 


85050 
750 


255 
120 


20 
4501 


1050 

25 


160050 
150 

150 

37& 

2450 
626 

50 

1275 
5 

480 
300 

4250 

50 

1610 

100 


8nl.] 


LEDGER. 
FRANK  WHITBY, 


1883 
Aug 


ToN.  Fnmk 
OrooeriM 
Net  Cap. 


150 

4250 

146985 


1062  U 


18831 
Aug 


/* 


By  Invt. .... 
Nei  Oain. 


10 


160050 
61 85 


IfATHAN  FRANK, 


1883 
Aug 


ToCbrfj 

Aooeptanoe,  10  da. 


18831 
Aag 


By  Balance 


IQ 


150 

Iso 


FRANK  MERRILL. 


1883 

A;^ 


2  To  Mdae. 


■Iigll    ^jp^iiBy 


Balance. 


S76 


E88IE  SMITE. 


1883 
Aug 


J£ 


To  MdMi.. 
Baltmce 


19 


24  50 


1883 
6125  Ang 
1SS6 


3  By  Mdae. 


IS 


24^ 


2450 


WILLIAM  ROBERTS. 


6  To  Mdae. 
9 


1883 
12t75lAug 


16 


By  Caah... 
Balance 


19 


85 


2885 


CALVIN  WEBSTER. 


1883 
Ang 


6  To  Mdae. 


19 

480 

1883 
Aug 

480 

By  Note,  30  da. 

Caah 

Balance .... 


19 

300 

19 

50 

ISO 
480 

20 


S«T    1.] 


CASH  BOOK, 

[Single  Page  Form.] 


1883 


Amt.  on  hand 

Paid  N.  Frank  on  <% 

Rec'd  of  Wm.  Roberts  on  ojfc  . . 

"      •'  Calvin  Webster  on  <% 

Balance 


850501 

5 
50 


90550 


50, 


85550 


90550 


BALANCE  SHEET  (or  Statement). 


Dr.        Cb. 


Frank  Merrill 

Essie  Smith 

Wm.  Roberts 

Calvin  Webster 

Cash 

Bills  Receivable.     (See  B.  B.,  on  pp.  22  and  23) 
Bills  Payable.     (See  B.  B.,  on  pp.  22  and  23) . . 

Mdse.  on  hand,  as  per  Invt.,  Aug.  12 

Present  Worth  (or  Net  Cap.)'. , . 


375 


2385 


85550 


130 
855 
300 

275 


1825 


100 


1469  SS 
1588 101 1588 10 


Another  form  for  a  Statement  is  the  following : — 


BALANCE  SHEET  (or  Statement), 


Resources. 

Frank  Merrill 

Wm.  Roberts 

Calvin  Webster 

Cash 

Bills  Receivable 

Inventory  of  Mdse.  on  hand. 


Liabilities. 
31751  Essie  Smith 
2386   BUls  Payable 
130        F.  Whitby's  Net  Investment. 
855501  Net  Gain, 

300 
275 
1588 10 


1825 
100 
1408 
6185 


158810 


Note.— Some  book-keepers  do  uot  enter  the  proprietor's  accouut  in  the  Day  Book  and  Ledger,  bat 
keep  a  Memorandam  Book,  in  which  a  statement  showing  the  condition  of  busineM  at  oommencios, 
is  made.    Agreements,  contracts,  etc.,  are  also  entered  in  this  book. 

21 


BILL 
BILLS 


CASH 
CASH  RECEIVED. 


[Set 


9m. 

WlMB 

PATSm. 

Patib. 

Date  of 
Note. 

Time  to 
Run. 

1 

1883 

fl 

QjTiB  W«baier 

Frank  Whitby 

1883 
Aug 

6 

90  d«. 

BILLS 

[Sit 

9m, 

WbtB 

laoed. 

Patbe. 

Patbb. 

Data  of 

Time  to 
Bud. 

1 

1883 
Aag 

10 

Frank  Whitby 

Nathan  Frank 

1883 
Aug 

10 

10  da. 

[Double 
[Set 


18831 
Aug 


Amt  invoatad  by  Frank  Whitby 

Rac'd  of  Wm.  Roberta,  on  oj^  ... 

•*      **  OilTin  Webster,  on  ^  . 


850  6C 

5 

50 


90550 


90550 


BILL 
BILLS 


[Set 


Bec'd. 

lan. 


Patsb. 


Patcb. 


Date  of 
Note. 


Time  to 
Rao. 


Febi 


12 


Geo.  &  Wella 
Cornelia  Walker 


Sage  ft  Co. 
Sage  &  Co. 


Jan.  25 


Feb. 


12 


30  dB. 
30  ds. 


BILLS 

[Set 

Mtt. 

WbM 

Patbb. 

Patbb. 

Date  of 
Note. 

Timet© 
Run. 

1 

1883 
Fab. 

1 

Sage  &Gow 

Edward  Thomas 

1883 
Feb. 

1 

eo  da. 

1.] 


BOOK. 
RECEIVABLE. 


WHEN  DUE. 

Amt. 

Where  Payable. 

j 

i 

i 

i 

■-a 

_< 

i 

5 

1 

i 

1 

REHABKS. 

San  Francisco 

300 

1.] 

PArAJSXjE?. 

WHEN  DUE. 

Amt. 

Where  Payable. 

1 

1 

1 

1 

5? 

9 

1 

i 

1 

1 

RKMABKS. 

San  Francisco 

100 

Page.] 

1.] 


BOOK. 
CASH  PAID  OUT. 


18831 
Aug 


Paid  Nathan  Frank,  on  <% 

Balance  on  hand^.    . 


50 

85550 


90550 


2.] 


BOOK. 
RECEIVABLE. 


WHEN  DUE. 

Amt 

Where  Payable. 

s 

1 

14 

t 

s 

j5. 

s 
■< 

1 

1 

§ 
^ 

1 

REMARKS. 

3an  Jose 
San  Jose 

24 

150      i 

Discounted,  Feb.  15. 
Received,  Feb.  19,  $20 

2.] 


PAYABLE. 


WHEN  DUE. 

~ 

Where  Payable. 

.a 

r 

a. 

•< 

2 

S" 

^ 

s 

9 

1 

1 

9? 

1 

Amt. 

REMARKS. 

8an  JoM 

100 

23 


INSTRUCTIONS  FOR  OPENING  AND  CLOSING  A 
SET  OF  SINGLE  ENTRY  BOOKS. 

For  Opening  a  Set  of  Books.  Credit  the  proprietor  in  the 
Day  Book,  or  Memorandum  Book,  with  his  Resources,  and 
debit  him  with  his  Liabilities.  If  it  is  a  partnership  business, 
credit  and  debit  each  partner  in  a  similar  manner. 

Take  an  inventory  of  all  property  on  hand,  classify  it,  and 
enter  each  class  of  property  in  its  proper  book;  cash,  in  the 
Cash  Book  or  Bank  Book;  notes,  in  the  Bill  Book;  Mdse.,  in 
the  Invoice  Book  or  Memorandum  Book;  etc.,  etc.  In  a  part- 
nership business  an  agreement  should  be  carefully  prepared  and 
signed,  and  recorded  in  the  Memorandum  Book. 

For  Clofdng  a  Set  of  Books.  Prepare  a  '^form^  for  a  state- 
ment— see  page  21.  Close  each  Ledger  account,  except  the 
proprietor's,  and  carry  the  l)alance  to  its  proper  place  in  the 
Statement  Close  the  Cash  Book  and  carry  its  balance  to  the 
Statement  Examine  the  Bill  Book  and  ascertain  the  amounts 
still  due  on  Notes,  Drafts,  etc.,  and  enter  these  amounts  in  the 
Statement  Take  an  Inventory  of  Mdse.  on  hand,  and  all 
other  property  not  accounted  for  in  the  Books,  and  enter  these 
Inventories  in  the  Statement 

One  side  of  the  Statemeiit  will  now  show  all  the  Resources, 
and  the  other  side  all  of  the  Liabilities  of  the  business.  By 
dosing  this  statement  into  the  proprietor's  account,  or  by  clos- 
ing the  proprietor's  account  into  this  Statement,  the  loss  or 
gain  may  be  ascertained.  (For  examples  of  Statements,  see 
page  21.) 

Proof-Skeet  If  you  post  only  from  the  Day  Book,  the  sum 
of  the  debit  and  credit  footings  of  the  several  Ledger  accounts, 
should  equal  the  total  footings  of  the  Day  Book.  Make  the 
proof-sheet  before  the  accounts  are  closed. 

Net  Capital  or  Net  Insolvency.  Find  the  Net  Capital  or  the 
Net  Insolvency, — ^by  taking  the  difference  between  the  Resources 
and  the  Liabilities. 

Net  Gain  or  Loss.  Find  the  Gain  or  Loss,— by  taking  the 
difference  between  the  Net  Capital  at  commencing  and  the  Net 
Capital  at  closing. 

34 


suaaESTioNs  and  reviews. 

Why  is  a  Day  Book  kept?  What  kind  of  transactions  are 
entered  in  the  Day  Book?  When  are  cash  items  entered  in  the 
Day  Book  ?  How  are,  in  the  Day  Book,  the  debits  distinguished 
from  the  credits?  (See  pp.  17  and  19.)  Why  are  the  Day  Book 
entries  transferred  to  the  Ledger  ?  What  is  this  process  of  trans- 
ferring called  ?  Draw  a  Day  Book  form  on  the  board,  and  write, 
at  the  upper  left-hand  comer  of  form,  a  number  to  represent 
this  particular  page  of  the  Day  Book.  Draw  a  Ledger  form  on 
the  board,  and  write,  at  the  upper  left-hand  comer  of  form,  a 
number  to  represent  this  particular  page  of  the  Ledger.  Point 
out,  on  the  board,  the  two  sides  of  a  Ledger  account.  What  is 
the  left-hand  division  called  T  Why  ?  What  use  is  made  of  the 
column  on  the  left  side  of  each  of  the  two  right-hand  columns? 
What  use  is  made  of  the  two  columns  on  the  left  side  of  each 
division  of  a  Ledger  account?  Head  the  Ledger  form  on  the 
board,  using  your  own  name. 

Head  the  Day  Book  form  on  the  board,  using  the  name  of 
the  place  or  district,  where  your  school  is  located,  and  yester- 
day's date.  Prepare  an  example  of  selling  to  (use  your  own 
name),  on  ac(ft,  and  make  it  the  first  entry  in  the  Day  Book 
form  on  the  board.  Another,  of  buying  of  (use  your  own  name 
and  the  date  of  to-day),  mi  acc'tj  and  make  it  the  second  entry 
in  the  Day  Book  form  on  the  board.  Post  the  first  entry,  using 
the  Ledger  form  on  the  board;  and  be  careful  not  to  forget  to 
enter,  immediately  after  the  posting,  the  Ledger  page  in  the 
Day  Book,  and  the  Day-Book  page  in  the  Ledger.  Post  the 
second  entry,  and  attend  to  the  pages,  as  directed.  Close  the 
Ledger  account  on  the  board.  Point  out  the  footing  line;  the 
closing  line.  Which  of  these  are  single;  which  double  lines? 
Where,  and  how  far,  should  the  former  extend?  f Across  the 
money  columns^  and  on  the  lowest  of  the  ruled  lines  on  which  either 
an  item  has  been  posted,  or  a  balance  entry  made.)  Where,  and 
how  far,  should  closing  lines  extend  ?  ( Under  the  ruled  line  next 
to  the  footing  line;  and  across  each  of  the  two  date,  folio,  and 
money  columns.)  Prepare  an  example  of  seUing  to  (use  the  name 
of  a  student),  on  acc't,  and  of  receiving  at  the  time,  a  part  pay- 
ment by  cash  or  note.  Make  this  entry  in  the  Day  Book  form 
on  the  board.    (See  p.  19,  entries  of  Aug.  5th  and  6th.) 

25 


MODEL  SET  11. 

[This  Set  iUustrates  the  use  of  the  Sales  Book  and  Invoice  Book  as  prin- 
eipal  books.  (See  p.  7;  No.  10.)  Accounts,  in  the  Sales  Book  and  Invoice 
Book,  whioh,  ordinarily,  ought  to  be  entered  on  the  Day  Book,  to  be  thence 
transferred  to  the  Ledger,  are.  in  this  Set,  directly  posted  from  these,  othor- 
wise,  anxiliarv  books:  tnereov  obviating  the  necessitv  of  entering  these 
aeeoonts  in  tne  Day  Book.  Merchants,  however,  in  order  to  post  from  the 
Day  Book  oniy,  generally  prefer  to  enter  on  this  book  all  accounts  that  would 
have  to  appear  uiere  in  ease  a  Sales  liook  and  an  Invoice  Book  were  not  kept. 
Studenta,  therefore,  should  be  required  to  write  the  Day  Book  of  this  Set, 
additionallv,  in  that  full  form  which  shows  all  accounts  that  must  be  trans- 
farred  to  t)xe  Ledger.] 

San  Jose,  Feb.  1,  1883.  Sage  &  Co.  commenced  business  as 
follows : 

Resources.  Mdse.^  $1500;  (In  actual  business  an  Invt.  of 
Mdse.  would  be  entered  in  the  I.  B.,  or  the  M.  B.)  C'cwA, 
$800;  a  note,  dated  Jan.  25,  1883,  at  30  ds.,  for  $150,  against 
Geo.  S.  WeUs;   F.  M.  Righter  owes  this  firm  $120,  on  (f:. 

lAMlities.  D.  T.  Bateman  has  an  acc't  against  the  firm 
for  $75;  Edward  Thomas  holds  their  note,  dated  Feb.  1,  1883, 
at  60  ds.,  for  $100. 

Current  Items.  Feb.  2.  Bo't  of  Pacific  Mf  g  Co.,  for  cash,  10 
hair  mattresses,  (^  $12;  20  cane-bottom  chairs,  @  $2.10.  3 
Sold  H.  B.  Norton,  on  <jfc,  1  extension  dining  table,  $18;  6  gothic 
chairs,  @  $3.50.  4.  Paid  cash  for  coal  for  the  store,  $12.50.  5. 
Rec'd  cash  for  petty  sales,  $21.10.  6.  Sold  D.  E.  BushneU,  4 
library  chairs,  @  $4.50;  1  office  desk,  $22.50;  Rec'd  cash,  $20,— 
Bal.  on  ojc.  7.  Bo't  of  Pacific  Mfg  Co.,  on  ojc,  24  wash-stands, 
^  $4;  12  rosewood  center  tables,  @  $18.  9.  Sold  Geo.  S. 
WeUs,  on  <^,  1  mahogany  sofa,  $30.  10.  Rec'd  cash,  on  % 
of  F.  M.  Righter,  $50.  11.  Sold  D.  T.  Bateman,  on  ajc,  1  single 
bedstead,  $6;  1  "Sleepy  HoUow'»  chair,  $10.  12.  Sold  Cornelia 
Walker,  on  note  at  30  ds.,  1  easy  rocker,  $16;  1  library  book- 
case, $40;  3  parlor  chairs,  @  $6.  13.  Paid  cash  for  incidentals, 
$10.25.  15.  Discounted  Wells^s  note  of  Jan.  25th,  at  Bank  of 
San  Jose,  and  received  a  draft  on  San  Francisco  for  $145. 
Sent  the  draft  to  Pacific  Mfg  Co.,  to  be  credited  on  our  acc't. 
16.  Paid  $75  for  rent.  17.  Rec'd  cash,  on  %  of  F.  M.  Righter, 
$25.  18.  Sold  H.  B.  Norton,  on  %  1  piano  stool,  $8;  8  dining 
chairs,  @  $1.75.  19.  Rec'd  $20  of  Cornelia  Walker,  to  be  credited 
on  her  note.  20.  Took  an  inventory  and  find  Mdse.  on  hand, 
$1810.20. 

V«TB.— Tk«  NoCm  BMOtioned  in  thk  Set  an  in  the  Bill  Book  on  p«CM  22  ftiid  23. 

26 


DAY  BOOK. 

(Accounts  are  posted  directly  from  Sales  Book  and  Invoice  Book. ) 
Sit  2.]  SAN  JOSE,  February  1,  188S. 


28 


28 


29 


29 


29 


Sage  &  Co., 

Investment,  M.  B. 

Liabilities.     M.  B. 


Dr. 


F.    M.    RiOHTBR, 

Amt.  due  the  firm 


D.  T.  Batkman, 
Bal.  due  him 


10. 


F.    M.    RiOHTER, 

Cash,  on  <%  . 


15. 


Pacific  Mf'o  Co., 
Draft 


17. 


F.    M.    RiOHTER, 

Cash,  on  ofa  . 


Cr. 


Dr. 


Cr. 


Cr. 


Dr. 


Cr. 


WO 
175 

120 

75 

50 

145 


3160 


Sit  2.] 


INVOICE  BOOK. 

SAN  JOSE,  February  f,  1883. 


30 


29 


Pacific  Mf'o  Co., 
10  Hair  Mattresses, 
20  Cane  Bottom  Chairs, 
Cash. 

7. 

Pacific  Mf'o  Co., 
24  Wash-stands, 
12  Rosewood  Center  Tables, 
On  ojc. 


27 


San  Francisco. 

@  $12 

2.10 


San  Francisco. 

@$4 

18 


120 

42 


96 
216 


162 


312 


474 


8sr 


2.] 


SALES  BOOK. 

SAN  JOSE,  February  i,  J88S. 


B.B. 


H.  &  Norton,  Wright's  SUtion. 

1  Elxtenaion  Dining  Table 

6  Gothic  Chain.  @  $3.50 

On  Of,, 


D.    £.  BUSHNBLL, 

4  Library  Chain, 

1  Office  Deak 

R«c'd  Cash,  on  <^,  $20. 


Gko.  S.  Wsllb, 
1  Mahogany  Sofa 
On  % 


San  Jose. 
m  K60 


Mt.  View. 


11. 


D.  T.  Batemak, 

1  Single  Bedstead 

1  "Sleepy  Hollow  *"  Chair 
On  Of,, 


Dixon. 


12. 


CO&NKUA    WaLKBB, 

I  Easy  Rocker 

1  Library  Book -case 
3  Parlor  Chain, 
Note  at  30  ds. 

H.  B.  Norton, 

1  Piano  Stool. .  . 

8  Dining  Chairs, 

On  <^. 


San  Jose. 


@|6. 


18. 


Wright's  SUtion. 
@  $L75 


18 
21 


18 
22501 


6 
10 


16 
40 
18 


40160 


16 


74 


22 


221 


50 


S«t2.] 


LEDGEE. 
8A0E  &  CO. 


1883 
Feh 


20 


To  Liabilities , 

Net  Loss 

Bed.  (PrtmU  N«t  Cap. 


27 


175 
2395 

fSTlOS 
2570 


18831 
Feb 


By  Inrt. 


.27 


2570 


2570 


28 


LEDGER. 
F.   M.   RIOHTER. 


1883 
Feb. 


To  Bal.  due 


27 


120 


120 


1883 
FebJlOi 
17 

\£0 


By  Cash... 
<< 

BcUance, 


50 
25 

45 


120 


D.    T.  BATEMAN. 


18831 
Feb. 


90 


To  Mdse... 
Baiance 


281 


76 


1883 
Feb. 


By  Bal.  due. 


27 


75 


75 


PACIFIC  MF'Q  CO. 


1883 
Febcl5 

M 


To  Draft... 
Balance 


27 


145 

/67 


312 


1883 
Feb, 


By  Mdse 27 


312 


312 


H.  B,  NORTON. 


1883 
Feb. 


To  Mdse. 


28 


61 


1883 

Feb.  S0\  By  Balance . 


6t 


61 


D.  E.  BU8HNELL. 


Feb. 


6  To  Mdse 28 


1883 
40|50  Feb, 


20 


ejBy  Cash... 
Balance 


28 


20 
go  50 


GEO.   8.  WELLS. 


18831 
Feb. 


9  To  Mdse. 


1883 

Feb.  SC\  By  Balance , 


SO 
30' 


29 


tor  2.] 


CASH  BOOK. 


Dk.      Ck. 


Feb 


Amt  on  hand 

paid  Pacific  Mfg  Co. 

••    for  CoaL 

r«cM  for  Petty  Sales 

"     from  D.  E,  Buahnell 

*'     F.  M.  Righter 

paid  for  Incidentals    

*•      **    Rent  of  Store , 

rec'd  from  F.  M.  Righter 

••     Cornelia  Walker,  on  Note 
Baiamee 


800 


936 


10 


10 


162 


75 


676  36 


93610 


1250 


1025 


Swt  2.] 


STATEMENT. 


RxsouBcn. 

Personal  Accounts  (Ledger) 
Bills  Receivable  (B.  B.) . . . . 

Cash(C.B.) 

Mdse.  (Inventory) 


15650 
54 

67635 
181020 


269705 


LlABILITIKS.  

Personal  Accounts  (Ledger). . 

BUU  Payable  (B.  B.) 

Sage  k  Go's  Present  Net  Cap. 


226 

100 

^S71 


2607 


05 


06 


8k«  a  Co*i  Net  InTMtment,     -    12396 

"     Prwent  Net  Capful,    2371.06 
••     Net  Loa.  23.96 


S«T  2.] 

Dr. 


PROOF-SHEET. 


Cb. 


175 
120 
16 
145 
61 
40 
30 

587 


50 


50 


.Sage  ACo 

.F.  M.  Righter 

D.  T.  Bateman 

.Pacific  Mfg  Co.... 

.H.  B.  Norton 

.D.  E.  Bushnell 

.Geo.  S.  Wells 

.Bills  Receivable  (B. 


B.). 


ToUd  Debits,  f  587.60 
"      CrediU,    3106 

S3693.50 


Total  Day  B.,     -  t3160 

"      Sale*  B.,  -  -    221.80 

"      Invoice  B.,  on  acc't,    312 

$3693.50 


12570 

75 

75 

312 

20 

54 


3106 


COMMERCIAL  TERMS. 

Acceptance.  The  formal  receiving  of  the  terms  of  a  draft  or  bill, 
by  which  the  acceptor  binds  himself  to  pay  it  when  due.  It 
is  signified  by  the  acceptor  writing  across  the  face  of  the 
bill  the  word  "  Accepted,"  and  the  date,  and  signing  his  name. 
The  name  of  the  bill  after  it  has  been  accepted. 

Account  Current.    A  statement  in  detail  of  a  running  account. 

Ad  Valorem.    According  to  value  at  the  cost,  or  invoice  price. 

Advice.    Mercantile  information. 

Appraisement.    The  act  of  setting  a  value  upon  property. 

Auditor.    A  person  appointed  to  examine  accounts. 

Average.  A  medium  time  for  the  payment  in  one  sum  of 
several  items  due  at  different  times,  so  that  neither  party 
shall  lose  interest.  An  assessment  proportioned  upon  a  vessel 
or  cargo  to  meet  losses  at  sea. 

Balance.    To  close  an  account.    Difference  between  the  debits 

and  credits. 
Balance  Sheet.    A  statement  in  condensed  form  showing  the 

condition  and  progress  of  business. 

Balance  of  Trade.  The  difference  between  the  value  of  the 
exports  and  imports  of  a  country. 

Bankrupt.    One  who  is  unable  to  pay  his  debts.    An  insolvent. 

Bill-head.     A  printed  form  used  by  merchants  for  their  bills 

and  rendered  accounts. 
Bill  of  Entry.    A  list  of  goods  entered  at  the  Oustom-House. 
Capital.     The  money  or  property  used  to  carry  on  a  business. 

Clearing-House.     The  place  where  balances  between  banks  or 

business  houses  are  adjusted. 
Clerical  Error.     An  error  in  calculation,  or  other  accidental 

error  on  books  or  documents. 

Collaterals.  Pledges  or  security  for  loans  of  money  or  other 
indebtedness. 

Consignee.     The  party  to  whom  goods  are  sent  to  be  sold. 
Consignment.    Goods  sent  or  delivered  to  a  consignee,  for  sale. 
Contra.     Against;   on  the  other  side. 

31 


COMMERCIAL  TERMS. 

Counter  Entry.  An  entry  made  to  balance  one  on  the  oppo- 
site side. 

Customs.    Taxes  or  revenue  duties  levied  on  goods  imported. 

Bays  of  Grace.  The  time  usually  allowed  beyond  the  expressed 
time  for  the  payment  of  negotiable  paper.  This  tiino  varies 
in  different  countries.  Days  of  Grace  are  not  allowed  ou  the 
Pacific  Coast  of  the  United  States,  except  on  sight  drafts  in 
Oregon. 

DiTidend.    Gain  to  be  divided  among  stockholders 

Drawee.    The  person  on  whom  the  bill  is  drawn. 

Drawer.  The  party  making  the  draft,  or  requesting  that  the 
payment  be  made. 

Dnty.    Customs. 

Endorse.    To  write  one's  name  on  the  back  of  a  note  or  bill. 

Entry.    A  record  made  in  an  account  book. 

Exhibit.  A  transcript  of  Ledger  balances.  A  written  state- 
ment of  the  affairs  of  a  merchant. 

Face.    The  amount  for  which  a  note  or  bill  is  drawn. 

Favor.  A  term  for  a  letter  received.  A  note  is  drawn  m 
favor  of  the  person  to  whom  it  is  made  payable. 

Guarantee.    A  promise  to  indemnify  against  loss. 

Gross  Weight.  The  total  weight  of  goods  with  boxes,  bags, 
or  chests  in  which  they  are  packed. 

Hypothecate.    To  pledge  as  security. 

Import.  To  bring  goods  from  another  country  in  the  trans- 
action of  commerce. 

Insolvent.    Without  means  tx)  pay  one's  debts. 

Index.    An  alphabetical  table  of  Ledger  accounts. 

Installment.  The  part  of  an  amount  to  be  paid  at  a  particular 
time. 

Jettison  or  Jetsam.  Goods  thrown  overboard  to  lighten  a  ship 
in  a  storm. 

License.    A  legal  permit  to  do  business. 

Liquidation.    The  act  of  paying  or  settling  indebtedness. 

32 


COMMERCIAL  TERMS. 

Manifest.  A  list  of  the  packages  of  a  cargo,  with  the  marks 
on  them,  and  the  name  of  the  person  to  whom  sent. 

Maturity.     The  time  when  a  note  or  bill  falls  due. 

Maximum  Price.    The  highest  price  of  an  article. 

Negotiate.    To  dispose  of;  to  bargain. 

Net  Proceeds.  The  amount  received  from  sales  after  all  charges 
have  been  deducted. 

Notary  Public.     An  officer  who  attests  contracts,  or  writings 

of  any  kind. 
Open  Account.     A  running  or  unsettled  account. 
Par.     Equal.     The  first  or  nominal  value. 
Payee.     The  person  to  whom  money  is  paid. 

Port  of  Entry.  A  harbor  where  a  Custom-House  is  established 
for  the  collection  of  import  duties. 

Power  of  Attorney.  A  writing  which  gives  one  authority  to 
act  for  another. 

Premium.  Excess  above  par.  The  price  paid  for  insurance 
Banker's  charge  for  bills. 

Pro  Rata.     A  proportional  distribution. 

Protest.  A  legal  notification  that  a  bill  was  not  accepted 
when  presented,  or  that  a  note  or  bill  was  not  paid  when 
due. 

Rebate.     Discount.    A  deduction  for  prompt  payment. 

Remittance.     Funds  sent  from  one  place  to  another. 

Sight.  The  time  when  a  note  or  bill  is  presented  for  pay- 
ment. 

Solvent.    Sound;  able  to  pay. 

Specie.  Gold,  silver,  or  copper  coin  used  as  a  circulating 
medium  of  commerce. 

Tare.  An  allowance  for  the  weight  of  the  box,  barrel,  etc., 
which  contains  the  goods. 

Voucher.     A  person  or  document  serving  as  evidence. 

Way-Bill.  A  document  containing  a  list  and  description  of 
goods  sent  by  a  common  carrier  by  land. 


BUSINESS    PAPER. 

Negotiable  Paper  is  any  form  of  business  paper  that  can  be 
transferred  from  one  person  to  another  for  a  valuable  consider- 
ation^ either  by  endorsement  or  assignment.  There  are  several 
classes  of  negotiable  paper,  the  most  important  of  which,  are 
BiUs  of  Exchange,  Bank  Notes,  Promissory  Notes,  Certificates 
of  Deposit,  Checks,  Bonds,  Bills  of  Lading,  Letters  of  Credit, 
and  Due-Bills. 

Non-negotiable  Paper  is  that  which  is  made  payable  m  a 
person  therein  named,  without  authority  to  transfer  to  a  third 
party. 

Negotiability.  Bearer  or  order  are  the  words  usually  used 
to  express  negotiability,  but  any  words  in  a  legal  instrument 
by  which  it  can  be  inferred  that  it  is  intended  to  be  nego- 
tiable will  make  it  transferable.  When  payable  to  hearer  the 
paper  may  be  transferred  without  endorsement;  but  when  pay- 
able to  order  it  requires  the  payee's  signature  before  it  can 
be  transferred. 

A  Promissory  Note  is  a  written  or  print€<l  promise  by  one 
party  to  another,  to  pay  a  specified  sum  of  money  at  a  certain 
time,  with  or  without  interest.  The  original  parties  are  called 
the  maker  and  the  paye^. 

The  Several  Kinds  of  promissory  notes  are  called  Individual, 
Joint,  Joint  and  Several,  Chattel,  and  Bank  Notes.  In  the  indi- 
vidual note,  but  one  person  makes  the  promise  to  pay.  In  the 
joint  note,  the  promise  is  made  jointly  by  two  or  more  persons. 
In  the  joint  and  several  note,  each  signer  assumes  the  whole 
responsibility. 


BUSINESS    FORMS. 
NOTES. 

1.    INDIVIDUAL. 

$1200^.  Vallejo,  May  15,  1883. 

Sixty  days  after  date,  I  promise  to  pay  to  C.  B.  Towle  or 
order,  One  Thousand  Two  Hundred  Dollars,  in  U.  S.  gold  coin, 
▼alue  received. 

W.  T.  Wallace. 
34 


BUSINESS  FORMS. 

2.     IN1>IVII>UAI>,    WITH    INTEREST. 

$5007%.  SuisuN  City,  June  3,  1883. 

One  year  after  date,  I  promise  to  pay  to  William  Wolf  or 
bearer,  Five  Hundred  Dollars,  value  received,  with  interest  at 
the  rate  of  one  per  cent,  per  month. 

Moses  Frank. 

S.     JODIT   AND   SEV£RAX. 

$300/^.  Sacramento,  Aug.  8,  1883. 

Three  years  from  date,  we  jointly  and  severally  promise  to 
pay  to  Henry  Edgerton,  Three  Hundred  Dollars,  in  U.  S.  gold 
coin,  value  received,  with  interest  at  seven  per  cent,  per  annum. 

Henry  Martin, 
Charles  Jones. 

4.     JOINT. 

$10()0TVff-  San  Jose,  Sept.  8,  1883. 

Ninety  days  after  date,  we  promise  to  pay  to  T.  E.  Kennedy 

or  order,  at  the  Bank  of  San  Jose,  One  Thousand  Dollars,  value 

received. 

C.  W.  Childs, 
J.  G.  Kennedy. 

s.    payable  by  installments. 

$2mO^%%.  Los  Angeles,  Jan.  5,  1883. 

Six  months  after  date,  1  promise  to  pay  to  Widney  &  Co. 
or  order,  at  their  store  in  the  city  of  Los  Angeles,  value 
received,  Two  Thousand  Dollars,  with  interest  at  one  per  cent, 
per  month,  reserving  the  right  t«  make  partial  payments,  in 
sums  not  less  than  Ten  Dollars. 

Henry  Blank. 

«.    chattel. 

Santa  Cruz,  Nov.  15,  1883. 
Three  months  from  date,  for  value  received,  I  promise  to 
pay  to  George  Bennett  or  order.  Four  Hundred  Dollars,  in  Red- 
wood Lumber,  the  same  to  be  dehvered  as  per  his  order, 
within  the  limits  of  the  city  of  Santa  Cruz,  and  valued  at  the 
market  rate  prevailing  at  the  date  of  delivery. 

Charles  Allen. 


BUSINESS  FORMS. 

7.     BUiNK    PRINTED    FORM. 

$ San  Jose 

after  date, promise  to  pay  to 

or  order,  the  sum  of 

payable  in  gold  coin  of  the  United  States,  with  interest  thereon 

in  like  gold  coin  at  the  rate  of from 

date  until  paid,  value  received. 


Vvtu. — All  of  theM  uoUt  are  negotiabl*  except  No.  3.    Wben  imlerml  ia  not  mentioned,  the  note 
will  draw  iatamt,  at  the  cnatomAry  rate,  after  it  i«  due. 


EXCHANGE. 

Exchange  is  a  term  employed  to  denote  that  commercial 
usage,  by  which  merchants  and  others  avoid  the  risk  and  ex- 
pense of  sending  money  to  make  payments  in  distant  places, 
by  transmitting  Drafts  or  BiUs  of  Exchange. 

A  Bill  of  Exchange,  or  Draft,  is  a  written  order,  directed 
to  a  person  in  a  distant  place,  for  the  payment  of  a  specified 
sum  of  money  at  a  specified  time.  There  are  two  classes  of 
Exchange — foreign^  and  inland  or  domestic. 

Inland  Bills  of  Exchange  are  such  as  are  both  drawn  and 
paid  in  the  same  state  or  country. 

Foreign  Bills  of  Exchange  are  drawn  upon  persons  living 
in  another  state  or  country.  They  are  usually  drawn  in  sets 
of  three,  one  of  which  being  honored,  the  others  become  void. 
The  separate  bills  are  sent  by  different  routes,  or  at  different 
times,  in  order  to  insure  a  certainty,  that  at  least  one  shall  be 
received. 

8.     TOfCE    DRAFT. 

$125^.  Marysville,  Dec.  10,  1883. 

Sixty  days  after  date  pay  to  Dudley  C.  Stone  or  order. 
One  Hundred  and  Twenty-five  Dollars,  value  received,  and 
charge  to  account  of 

RoBT.  Strong. 
To  F.  A.  Campbell, 

San  Francisco. 

M 


BUSINESS  FORMS. 

9.    SIGHT   DRAFT. 

$20(VW-  San  Francisco,  Feb.  12,  1883. 

At  sight,  pay  to  J.  L.  Mosher  or  order,  Two  Hundred  Dol- 
lars, value  received,  and  charge  to  account  of 

Albert  Leyser. 

10.     FOREIGN    DRAFT. 

Exchange  for  £500.  San  Francisco,  July  5,  1883. 

Ten  days  after  sight  of  this  my  first  Bill  of  Exchange, 
(second  and  third  of  same  date  and  tenor  unpaid,)  pay  to  John 
Adams  or  order,  Five  Hundred  Pounds  Sterling,  value  received, 
with  or  without  further  advice. 

Wm.  Chipman. 
To  Pedbody  &  Co,, 

BankerSj  Liverpool. 

KoTK.— In  form  8,  Robt.  Strong  is  the  drtaoer,  Dudley  C.  Stone  the  poigt,  and  F.  A.  Campbell  the 
drawee.  Campbell  is  not  a  )>arty  to  this  draft  until  he  accepts;  which  consists  in  writing  across  the 
face  of  the  draft,  in  red  ink,  the  word  aeeepUd,  and  the  dajr  of  the  month  and  year,  placing  hk 
•ignature  oitdenieath :    AeeepUd  Dte,  6,  1883.    F.  A.  OantpML 


DUE-BILL. 

A  Due-Bill  is  a  written  acknowledgment  of  a  debt.  It  is 
usually  given  instead  of  a  note,  when  a  debt  is  to  be  paid  in 
a  short  time. 

11. 

$25^.  Colusa,  May  10,  1883. 

Due  Greo.  P.  Ahlf  or  order,  ten  days  from  date,  Twenty- 
five  Dollars,  value  received. 

James  G.  Beaty. 

13. 

$403<\fiy.  San  Jose,  Aug.  10,  1883. 

Due  Frank  Butts,  on  demand,  Forty  Dollars. 

John  Sullivan. 

13. 

$75V\fe.  Modesto,  Sept.  15,  1883. 

Due  to  C.  P.  Evans,  Seventy-five  Dollars  in  goods  from  my 
store. 

Fred  A.  Hazzabd 
rt 


BUSINESS  FORMS. 
BANK   CHECKS. 

A  Check  is  an  order  on  a  Bank  to  pay  money  on  demand. 
Checks  are  usually  printed  in  blank  and  filled  up  as  they  are 
required.  A  certified  check  is  one  that  has  been  presented  to  a 
bank  and  certified,  that  is,  accepted.  This  is  done  by  the 
"Teller,"  who  writes  across  the  face  "Certified"  and  his  sig- 
nature. 

14. 


Jl 

No.  45,                                San  Jose,  Aug,  5,  188S. 

The  Bank  op  San  Jose, 

n 

Pay  to J.  H,  Braly, or  Bearer, 

tF 

Two  Hundred  and  Fifty  rrrrrrryrr^rrrrr:.  hoiUrs. 

^50,^                                                         Ruth  Royce. 

CERTIFICATE  OF  DEPOSIT. 

A  Certificate  of  Deposit  is  an  instrument  issued  by  a  bank, 
and  certifies  that  a  person  mentioned  therein,  has  deposited  a 
certain  sum  of  money,  payable  to  his  order  upon  the  surrender 
of  the  certificate,  properly  endorsed.  In  nature  it  is  the  sam* 
as  a  certified  check. 

15. 


$ San  Jose, 

Comaiercial  Bank, 

has  deposited  in  this  Bank 

DoUars, 

payable  to  the  Order  of 

on  the  return  of  this  Certificate  properly  endorsed. 

No Cashier. 

38 


BUSINESS  FORMS. 
BILL  OF  LADING. 

A  Bill  of  Lading  is  an  instminent  signed  by  the  proper  officer 
of  a  vessel,  acknowledging  the  receipt  of  certain  packages  or 
quantities  of  goods,  and  promising  under  certain  exceptions,  to 
deliver  the  same  "in  like  good  order,"  at  the  place  directed. 


LETTER  OF  CREDIT. 

A  Letter  of  Credit  is  a  letter  authorizing  credit  to  a  certain 
amount  of  money  to  be  given  to  the  bearer. 

16.     A   LETTER   OF    CREDIT. 

San  Jose,  July  10,  1883. 
Messrs.  C.  H.  Strong  &  Co., 

London,  England. 
Oentlemenj 

We  have  the  pleasure  of  introducing  to  you  Mr. 
Henry  C.  Clayton,  who  desires  us  to  open  a  credit  with  you, 
for  him,  for  six  hundred  pounds  sterling.  You  will  please 
honor  his  drafts  to  an  amount  not  exceeding  in  the  aggregate 
the  above  sum,  and  charge  the  same  to  us. 

Very  truly. 
Signature  of  T.  E.  Beans. 

Henry  A.  Clayton. 


ENDORSEMENTS. 

Endorsement.  Anything  written  on  the  back  of  negotiable 
paper,  having  relation  to  the  paper  itself,  is  an  endorsement. 
The  endorsement  is  generally  made  for  the  purpose  of  trans- 
ferring the  right  of  tiie  holder  to  some  other  person. 

There  are  five  kinds,  called  the  Blank,  Full,  Conditional, 
Qualified,  and  Restrictive.  A  blank  endorsement  is  made  by  the 
holder's  simply  writing  his  name  on  the  back  of  the  paper.  An 
endorsement  in  full  mentions  the  name  of  the  person  iu  whose 
favor  it  is  made.  A  conditional  endorsement  is  one  made  sub- 
ject to  some  condition  which  must  be  performed  to  render  the 
instrument  valid.     A  qualified  endorsement  is  one  in  which  the 

39 


UNIVi:H. 


BUSINESS  FORMS. 

endorser  can  qualify  or  limit  his  responsibility  by  the  terms  of 
the  endorsement.  A  restrictive  endorsement  is  one  which  re- 
stricts the  payment  to  some  particular  person.  As  no  particular 
form  of  words  is  necessary  in  the  construction  of  negotiable  paper, 
80  no  particular,  form  is  necessary  for  its  endorsement.  But 
custom  has  established  certain  forms  which  are  in  use  among 
business  men.    Following  are  the  usual  forms  of  endorsement: 

Blank: 

O.  B.  Kleeherger. 

In  FnU: 

Pay  to  J.  E.  Braly  or  order, 

Eliza  B.  Barnes. 

Qnalifled,  1st  Form: 

Fay  to  J.  E.  Ellwood  or  order^ 
without  recourse. 

M.  E.  WiUon. 

Qualified,  2d  Form: 

'  Pay  to  Mary  P.  Adams  or  order. 

L.  P.  Sargenty  Agt. 

BestrictlTo: 

Pay  to  Chas.  E.  Allen  only, 

I.  Q.  Oakley. 


BILLS  AND  INVOICES. 

A  Bill  is  an  account  rendered  in  items.    There  are  two  kinds: 
one  for  services  rendered,  and  the  other  for  goods  sold. 

17.     FOR   SERVICES. 

San  Jose,  March  10,  1883. 
Eugene  C.  Cole, 

To  Elmer  Brownell,  Dr. 

For  3  days'  Work,  Repairing  Fence,  @  $2.50 $7.50. 

40 


BUSINESS   FORMS. 

18.     RECEIPTED    BILL. 

Walnut  Creek,  Feb.  9,  1883. 
Geo.  E.  Laekey, 

To  Daniel  Mahoney,  Dr. 

For  five  days'  Labor,  Trimming  Trees,  @  $2 $10.00. 

Rec'd  Payment, 

Daniel  Mahoney. 


Mr.  Geo.  Rice, 


19.     FOR    GOODS  SOLD. 

Yreka,  June  5,  1883. 
Bo't  of  Vance  &  Walbridge. 


150  ^  Granulated  Sugar, 
60  ff  Dried  Peaches, 


13^ 
15^. 


1950 


2850 


Miss  Mollie  Walsh 


20.     FOR    GOODS   SOLD. 

Placerville,  May  15,  1883, 

r 

To  Alderson  &  Co.,  Dr. 


To  16  ff  Gingham,  @  15^ 

•*   10  fj:  White  Embroidery,  Sojf 

Rec'd  payment, 

Thos,  Aldkrson. 


240 


540 


21.     ITEMS   OF   AN  ACCOUNT. 

ViSALLA,  Aug.  10,  1883. 
Messrs.  Low  &  Parker, 

In  Account  with  James  Trimble,  Dr. 


1883 
Jun. 

Jnly 
Jun. 


@$3. 


8^, 
12^ 


To  40  ;^  Broadcloth, 
"   50  ;ir  Muslin, 
"   60  ff  Cotton  Batting, 

Cr. 
By  15  fji  Broadcloth,  @  $2.50.     (Returned  damaged) 

'*    Cash 

Balance  due 

Rec'd  payment, 

James  Trimblk, 

per  David  Snodgrass. 

41 


120 


720 


37501 
40 


13120 


7750 


5370 


BUSINESS   FORMS. 

22.     ACCOUNT    OF  8AIJB. 

Sales  CrjiJM  on  Joint  Account  of 

R.  J.  SiNNOTT  and  Ourselves,  each  J. 


1883 


May  25 


Sold  Henry  Petray,  on  <^,  60  ds., 

300  bbla.  Flour,  @  $7 

Sold  A.  R.  Sheata,  for  cash, 

200  bbU.  Flour,  @  $6.75 

Charge. 

Storage  and  Adrertiaing 

Commiasion,  2^%  on  $3,450 

Oar  i  net  gain *. 

R.  J.  Sinnott*8  net  proceeds 

Invoice,  500  bbls.  Flour,  @  $6 $3,000 

^  net  gain 169.37 

$3,169.37 


Dne  by  Equation. 


E.K. 


San  Diego,  May  25,  1883. 


2100 
1350 


25 
86  2d 


3450 


28063 


316937 


ORDERS. 

An  Order  is  a  written  request  to  deliver  money  or  goods. 
It  is  used  by  the  person  receiving  it  as  a  voucher  that  the  per- 
son signing  it  is  responsible,  and  that  the  thing  or  things 
mentioned  have  been  delivered. 


23.  ORDER   FOR   MONET. 

Santa  Barbara,  June  1,  1883. 
Mr.  A.  W.  MiZE, 

Please  pay  to  John  W.  Stirling  or  order.  Twenty  Dollars, 

on  my  account. 

L.  N.  Wristen. 

24.  ORDER   FOR   GOODS. 

Eureka,  July  12,  1883. 
Mr.  I.  S.  Thompson, 

Please  deliver  to  Geo.  Duncan,  Thirty  Dollars  in  goods 
from  your  store,  and  charge  to  my  account. 

John  Trimble. 


BUSINESS  FORMS. 
RECEIPTS. 

A  Receipt  is  an  acknowledgment  in  writing  that  a  sum  of 
money,  or  something  of  value,  has  been  received.  The  simplest 
form  of  a  receipt  is  a  signature  to  an  itemized  bill.  The  pur- 
pose in  exacting  a  receipt  is  that  it  may  serve  as  a  voucher  in 
case  of  a  dispute  as  to  what  has  occurred.  As  a  simple  evi- 
dence of  the  payment  of  money  at  a  particular  time,  a  bank 
check  drawn  to  the  order  of  the  payee  is  the  best. 

25.     MONEY    ON    ACCOUNT. 

$100. 

Received,  San  Jose,  Oct.  1,  1883,  of  Frederick  Baily,  One 
Hundred  Dollars  on  account. 

John  Raker. 

«6.     IN   FUIX   OF  AXL  DEBLANI>S. 

$75t%^.  Colusa,  March  25,  1883. 

Received  of  W.  H.  Summer,  Seventy-five  and  ^y^^  Dollars, 
in  fuU  of  all  demands  to  date. 

M.  A.  Rouse. 

27.     FOR   ADVANCE   ON    CONTRACT. 

$80.  Santa  Clara,  May  30,  1883. 

Received  of  Arthur  Knox,  as  an  advance  on  contract  for 
furnishing  200  cords  of  Live  Oak  Wood,  Eighty  Dollars. 

George  Edgar. 

28.     FOR    RENT. 

$60.  San  Jose,  May  1,  1883. 

Received  of  Carl  H.  Allen,  Sixty  Dollars,  in  full  for  one 
quarter's  rent  of  House  No.  1524  Seventh  Street,  due  this  day. 

F.  G.  Tyrrell. 

29.     TO   SERVE  AS  AN   ENDORSEMENT. 

Received,  July  8th,  1883,  on  the  within  note,  Fifty  Dollars. 

Wm.  E.  Bacon. 

30.     TO   APPLY  TO   CONTRACT. 

Received,  San  Jose,  May  9,  1883,  of  F.  P.  West,  One  Hun- 
dred  and  Forty  Dollars,  the  same  to  apply  to  contract  for 
building  house,  dated  April  1,  1883. 

J.  R.  Saunders. 
48 


BUSINESS  FORMS. 
BILL  OF  SALE. 

31.     SHORT   FORM. 

Lakepobt,  Aug.  10,  1883. 
I  hereby  acknowledge  the  sale  of  (here  insert  a  description 
of  the  property),  to  Charles  P.  Adams  of  San  Jose,  Cal. 

Peter  A.  Ames. 

ARTICLES  OF  AGREEMENT. 

An  Agreement  is  virtually  a  contract,  by  which  a  certain 
person  or  persons,  agree  to  perform  certain  duties  within  a 
specified  tune. 

Agreements  should  show  that  they  are  made  for  a  reasonable 
consideration,  else  they  are  void  in  law. 

Copies  of  an  agreement  should  always  be  prepared  in  dupli- 
cate, and  each  party  to  the  agreement  should  retain  a  copy. 

32.      GENERAL    FORM. 

This  Agreement,  made  the  first  day  of  May,  1883,  between 
Chas.  C.  Adams,  of  Gait,  County  of  Sacramento,  State  of  Cali- 
fornia, of  the  first  part,  and  F.  A.  Butts,  of  Pacheco,  County 
of  Contra  Costa,  State  of  California,  of  the  second  part, 

Witnesseth,  that  the  said  Chas.  C.  Adams,  in  consideration 
of  the  agreement  of  the  party  of  the  second  part,  hereinafter 
contained,  contracts,  and  agrees  with  the  said  F.  A.  Butts,  to 
(here  insert  specification  of  agreement). 

And  the  said  F.  A.  Butts,  in  consideration  of  the  prompt 
fulfillment  of  this  contract,  by  the  party  of  the  first  part,  con- 
tracts, and  agrees  with  the  said  Chas.  C.  Adams,  to  pay  (here 
insert  amount). 

In  case  of  failure  of  agreement  by  either  of  the  parties  hereto, 
it  is  hereby  stipulated  and  agreed  that  the  party  so  failing  shall 
pay  to  the  other  (here  insert  amount),  as  fixed  and  settled 
damages. 

In  witness  whereof,  we  have  hereunto  set  our  hands,  the  day 
and  year  first  above  written. 

Chas.  C.  Adams. 
F.  A.  Butts. 

4i 


BUSINESS  FORMS. 
LANDLORD  AND   TENANT. 

A  Landlord  is  a  person  who  leases  real  estate  to  another. 
The  person  who  holds  a  lease  is  known  as  a  tenant,  and  in 
law  he  is  called  the  lessee.  The  person  giving  the  lease — the 
landlord — is  called  the  lessor.  No  particular  form  of  wording 
a  lease  is  necessary. 

It  is  essential  that  the  lease  state  all  the  conditions,  as 
additional  verbal  promises  avail  nothing  in  law.  It  is  held, 
generally,  that  a  written  instrument  contains  the  details,  and 
states  the  bargain  entire,  as  the  contracting  parties  intended. 

33.      A   LSIASE. 

This  Instrument,  made  the  first  day  of  June,  1883,  Wit- 
nesseth,  that  Geo.  W.  Koch,  of  San  Juan,  County  of  San 
Benito,  State  of  Cal.,  has  rented  from  A.  L.  Talbot,  of  San 
Juan  aforesaid,  the  dwelling  and  lot  No.  320  Broadway,  situ- 
ated in  said  town  of  San  Juan,  for  three  years  from  the  above 
date,  at  a  yearly  rental  of  Two  Hundred  and  Forty  Dollars, 
payable  monthly,  on  the  first  day  of  each  month. 

At  the  expiration  of  said  above  mentioned  term,  the  said 
Geo.  W.  Koch  agrees  to  give  the  said  A.  L.  Talbot  peaceable 
possession  of  the  said  dwelling,  in  as  good  condition  as  when 
taken,  ordinary  wear  and  casualties  excepted. 

In  witness  whereof,  we  place  hereunto  our  hands  and  seals, 
the  day  and  year  aforesaid. 

Geo.  W.  Koch.  [l.  s.] 
A.  L.  Talbot,     [l.  s.j 


BUSmESS  LETTERS. 

Business  Letters  should  be  clear  and  concise.  No  more 
words  should  be  used  than  are  necessary  to  state  the  business 
fairly  J  nor  should  words  essential  to  the  construction  be 
omitted.  Avoid  interlineations  and  erasures;  these  indicate  a 
lack  of  interest  in  and  attention  to  the  subject,  and  greatly  dis- 
figure the  letter. 

The  teacher  should  use  the  blackboard  to  develop  the  different 
parts  of  a  letter. 

45 


BUSINESS  FORMS. 

34.     DfCLOSINO   SUBSCRIPTION. 

San  Luis  Obispo,  Cal.,  May  9,  1883. 
To  the  Publisher  of  the  "  Pacific  School  Journal," 
San  Francisco. 

Dear  Sir: — For  the  inclosed  Two  Dollars,  please 
Bend  "The  Pacific  School  Journal"  for  one  year,  beginning 
with  the  first  number  of  the  present  volume. 

Respectfully, 

May  E.  Jepson. 

35.     APPUCATION   FOR  A   STTUATIOlf. 

Monterey,  Cal.,  Oct.  10,  1883. 
H.  A.  Mobse, 

Co.  Snpt.  of  Schools,  Yreka. 

Dear  Sir: — Having  learned  that  there  is  a  vacancy 
in  the  Grammar  School  of  your  city,  I  offer  myself  as  a  can- 
didate for  the  position. 

I  graduated  at  the  State  Normal  School  in  San  Jose,  in  1880, 

and  ever  since  have  devoted  myself  to  the  work  of  teaching. 

I  have  testimonials   from    the    Trustees  of  several  schools; 

and  am  also  permitted  to  refer  to  the  Rev.  John  Smith  and 

Prof.  James  King,  of  this  city. 

Should  a  personal  interview  be  desired,  I   shall  be  glad  to 
see  you  when  it  may  be  most  convenient  to  yourself. 

Yours,  truly, 

Annie  E.  Johnson. 

36.     INTRODUCTION. 

Shasta,  Jan.  1,  1883. 
Messrs.  A.  L.  Bancroft  &  Co., 
San  Francisco. 
Gentlemen  : 

This  will  introduce  to  you  my  friend,  Mr.  Hamilton 
Fiflber,  who  visits  your  city  for  the  purpose  of  purchasing 
goods.  Mr.  Fisher  has  a  good  paying  business  in  this  city; 
in  fact,  is  one  of  our  "solid  men."  Any  favors  you  may  show 
him  in  regard  to  introducing  him  to  houses  not  in  your  line, 
will  be  highly  appreciated  by  Mr.  Fisher,  and  by 

Yours,  very  truly, 

Levi  F.  Herrod. 


BUSINESS  FORMS. 

37.     STATEMENT    OF  ACCOUNT. 

SuisuN  City,  Oct.  9.  1883. 
Leslie  Chrysler^ 

Sacramento. 

Dear  Sir: — Inclosed  please  find  our  usual  monthly 
statement  of  account.    If  you  find  it  correct,  we  shall  be  glad 
to  receive  an  early  remittance. 
Please  let  us  have  th©  amount,  if  you  can,  by  the  15th,  and 

oblige 

Yours  truly, 

M.  DiNKELSPEiL  &  Sons. 

M.    IHCI^SINO  REMITTANCE. 

Sacramento,  Oct.  12,  1883. 
M.  DmsELSPEiL  &  Sons, 
Suisun  City. 
Gentlemen  : 

I  herewith  inclose  a  Draft  for  Eighty  Dollars,  in  set- 
tlement of  account  as  per  statement  received. 
Please  acknowledge  receipt,  and  oblige 

Yours  truly, 

Leslie  Chrysler. 

S9.     ORDER   FOR   GOODS. 

Benicia,  May  12,  1883. 
Messrs.  Bancroft  &  Co., 

San  Francisco. 
Oentlemen  : 

Please  send  me  per  express,  as  early  as  possible: 

2  doz.  Milne's  Practical  Arithmetic. 

3  "     Harper's  School  Geography. 
5    "     Essentials  of  Book-keeping. 

Yours  truly, 

L.    WiNMAlW. 
40.     RECOMMENDATION. 

Lo^  Gatos,  Nov.  10,  1883. 
To  Whom  It  May  Concern: 

It  affords  me  pleasure  to  testify  to  the  personal  worth  and 
educational  qualifications  of  Miss  Julia  Harrington.    She  has 

17 


BUSINESS  FOEMS. 

tanglit  successfully  in  several  schools;  by  her  aptness  in  teach- 
ing, and  tact  in  enforcing  discipline,  she  has  made  a  reputation 
as  an  earnest  and  progressive  teacher. 
I  cordially  recommend  her  to  any  Board  of  School  Trustees. 

Respectfully, 

Silas  Wright. 

41.     MOTICIS  OF  SHIPMENT    OF   MERCHANDISE. 

San  Jose,  Aug.  6,  1883. 
Messrs.  Scott  &  Williams, 
San  Francisco. 
Oentlemen : 

According  to  your  order,  I  have  sent  you  to-day,  per 
S.  P.  R.  R.: 

100  boxes  Foster  Peaches. 
50  sacks  Early  Rose  Potatoes. 
Trusting  that  these  will  prove  satisfactory  and  bring  a  good 
price,  I  am, 

Respectfully  yours, 

Henry  Ahidom. 


QUESTIONS  FOR  REVIEWS. 

Business  Forms.  1.  What  is  negotiable  paper  t  2.  How 
may  it  be  transferred!  3.  How  many  kinds  are  there?  4. 
What  is  a  promissory  notet  5.  Who  are  the  original  parties  t 
6.  Mention  the  different  kinds  of  promissory  notes.  7.  Ex- 
plain the  difference  between  an  individual  and  joint,  or  a  joint 
and  several  note.  8.  Are  the  words  "value  received"  neces- 
sary in  a  notet  9.  What  are  "days  of  grace?"  10.  What  is 
honoring  a  note?  11.  What  is  it  to  discount  a  note?  12. 
What  is  an  indorsement?  13.  For  what  purpose  is  it  made? 
14.  What  is  the  effect  of  indorsing  a  note?  15.  How  many 
kinds  of  indorsement  are  there?  16.  Name  and  define  them. 
17.  What  is  interest?  18.  How  is  the  price  paid  for  the  use 
of  money  regulated?  19.  What  is  usury?  20.  What  is  the 
prevalent  opinion  in  regard  to  usury  laws?    21.   If  interest  is 

48 


BUSINESS  FORMS. 

not  mentioned  in  a  note,  can  interest  be  collected?  22.  What 
is  a  bill  of  exchange?  23.  How  many  kinds?  24.  Define 
foreign  and  inland  bills.  25.  In  how  many  ways  can  you  pay 
a  debt  in  a  distant  part  of  the  State  without  sending  coin  or 
bank  notes?  26.  What  is  the  difference  between  a  bill  of  ex- 
change and  a  draft?  27.  What  is  an  "acceptance"?  28. 
Why  and  how  is  it  made?  29.  Name  the  parties  to  a  bill  of 
exchange.  30.  What  are  the  benefits  of  drafts  or  bills  of 
exchange?  31.  What  words  express  negotiability  in  a  business 
paper?  32.  What  is  a  bank  check?  33.  What  is  the  person 
who  signs  a  check  called?  34.  Why  are  checks  usually  drawn 
to  the  order  of  a  person?  35.  When  can  payment  of  a  check 
be  countermanded?  36.  When  must  a  check  be  presented  for 
payment?  37.  Why?  38.  What  is  a  certified  check?  39. 
What  is  a  due-bill?  40.  Why  is  it  given  instead  of  a  note? 
41.  What  is  a  certificate  of  deposit?  42.  What  is  a  biU  of 
lading?  43.  What  is  a  letter  of  credit?  44.  What  is  an  order? 
45.  What  is  a  receipt  ?  46.  Of  what  is  a  receipt  evidence  ?  47. 
For  what  are  receipts  usually  given?  48.  What  is  a  bill?  49. 
How  many  kinds?  50.  Who  makes  out  a  bill  when  goods  are 
sold,  and  for  whose  benefit?  51.  What  are  the  benefits  of 
having  a  bill?  52.  What  is  an  invoice?  53.  What  are  some 
of  the  characteristics  of  a  business  letter?  54.  What  should 
be  the  style  of  writing?  55.  How  and  why  do  business  men 
keep  copies  of  the  letters  they  send  away? 

Write  out  these  Business  Papers.  1.  Gave  my  note,  at 
tliree  months,  to  (use  names  of  students  in  these  exercises), 
for  $350 J  interest  at  7%.    2.    Two  students  gave  a  "joint  and 

several''  note  to for  $240;    time,  two  years  from  date. 

3.  A  student  gave  a  chattel  note  to  ,  promising  to  de- 
liver $300  worth  of  hay  at  the  market  price,  three  months 
from  date.  4.  Write  a  note,  payable  6  months  from  date,  in 
U.  S.  gold  coin,  at  Commercial  Bank,  San  Jose;   interest,  1J% 

per  month.    5.   Draw  a  draft  at  30  days'  sight,  on  ,  of 

New  York,  in  favor  of    for  $350.     6.    Write   a  draft 

upon  yourself  and  accept  it,  with  name  of ,  residing  at 

,  as  drawer,  favor  of  for  $275.50.    7.    Remitted 

49 


BdlSlNESS  FORMS. 

to  John  Oxford,  in  London,  a  set  of  bills  of  exchange  for 
£560,  on  Smith  &  Rider,  at  30  days'  sight.    8.   Borrowed  of 

,  forty  dollars,  for  which  I  gave  my  due-bill,  payable 

in  10  days.    9 owes  me  fifty  dollars,  and  I  have  taken 

his  diie-bUl,  payable  in  goods  from  his  store,  on  demand. 
10.    Draw  your  check  on  San  Jose  Bank,  for  $100,  in  favor  of 

,  or  order.     11.    Write  a  letter  of  credit,  asking 

of  Paris,  to  honor  the   drafts  of  your  friend    ,  to  the 

amonnt  of    1500   francs.      12.    Give    an    order   to ,   on 

,  for   flour  from  his  store,  to  the  value   of   $30.      13. 

Oive an  order  on  ,  for  $40  in  cash.    14.    Pay  a 

debt   due  ,  by  giving   him   an   order   in  his   favor,   on 

,  for  $120.50.     15.    Write   a   receipt   for   $20,   received 

from  ,  for  one  month's  rent.     16.    Give  a  receipt 

for  $75,  paid  on  ace't.     17.   Give  a  n^ceipt  to  ,  for  books 

and  papers,  which  he,  as  a  county  officer,  has  turned  over  to 

you,  his  successor.     18.    Sold  on  ^,  10  yds.  blk.  silk, 

@  $2.25;  5  yds.  broadcloth,  @  $3;  3  doz.  buttons,  @  40^;  2i 
yds.  silk   serge,  @  $1.75  (make  out  the  bill).     19.   Worked  6^ 

days  for ,  repairing  fence,  @  $2.50  per  day  (make  out 

the  bill).    20.   Give  a  receipted  bill  for  the  following:     Sold 

for  cash,  5  gals.  N.  O.  molasses,  @  80^;  10  lbs.  coffee, 

@  20f ;  3  lbs.  tea,  @  75^'.  21.  Write  a  letter  to  a  merchant 
in  New  York,  ordering  a  bill  of  Mdse.;  state  how  the  goods 
are  to  be  sent,  and  the  manner  in  which  payment  will  be 
made.     22.    Write  a  letter  inclosing  statement  of  acc't,  with 

request  for  payment     23.   Write  a  letter  to ,  inclosing 

a  subscription  for  one  year;  specify  when  to  commence,  etc. 
24.    Write  letters  of  recommendation,  introduction,  etc. 

GENERAL  REVTEW  QUESTIONS. 

1.  Define  }x)ok-keeping  2.  Name  the  different  systems  of 
book-keeping.  3.  What  is  single  entry  book-keeping?  4. 
What  is  an  account!  5.  What  is  a  personal  account?  6. 
Define  an  entry;  an  original  entry.  7.  What  is  meant  by  the 
term  "debtor"?  8.  What  is  meant  by  the  term  "creditx>r'? 
9.    In  an  account,  how  are  the  entries  placed?    10.    What 

50 


GENERAL  REVIEW  QUESTIONS. 

the  balance  of  au  account,  and  how  is  it  found?  11.  What  i& 
a  transaction?  12.  What  does  the  debit  side  of  an  account 
show;  the  credit  side?  13.  When  do  you  debit  and  when  do 
you  credit  a  person  ?  14.  Define  principal  and  auxiliary  books. 
15.  Name  the  auxiliary  books.  16.  What  is  a  "set  of  books"? 
17.  What  is  meant  by  ''opening  a  set  of  books"?  18.  State 
the  use  of  the  various  books  used  in  book-keeping.  19.  Why 
may  Dr.  and  Cr.,  To  and  By,  be  omitted  from  the  Ledger?  20. 
What  is  the  meaning  of  the  figures  in  the  margin  of  Sales  Book 
and  Invoice  Book,  pages  27  and  28?  21.  What  are  footing  lines? 
22.  What  are  closing  lines?  23.  What  are  resources?  24. 
What  are  liabilities?  25.  What  is  meant  by  the  term  "mer- 
chandise"? 26.  What  is  an  invoice  ?  27.  What  is  an  inventory  ? 
28.  Define  bills  payable  and  bills  receivable.  29.  What  is  post- 
ing? 30.  In  posting,  why  is  the  page  of  each  book  written 
in  the  other?  31.  When  is  posting  done  in  actual  business? 
32.  When,  how,  and  why  is  the  check  mark  [y/]  used?  33. 
What  is  a  statement,  or  balance  sheet?  34.  When  and  why  is 
a  balance  sheet  made  out?  35.  What  is  meant  by  "net  capital"? 
36.  How  do  you  find  the  net  capital  at  commencing;  at  clos- 
ing? 37.  How  do  you  find  the  net  gain  or  loss  in  single  entry 
book-keeping?  38.  In  opening  a  set  of  books  what  entry  do 
you  make  for  the  proprieU^r?  39.  What  entry  is  made  in  the 
Bill  Book  when  a  partial  payment  is  made  on  a  note?  40. 
When  and  why  is  a  Bill  Book  kept?  41.  When  a  full  set  of 
books  is  kept,  and  you  post  only -from  the  Day  Book,  what 
entries  are  made  in  the  Day  Book?  42.  When  you  post  from 
the  C.  B.,  S.  B.,  and  I.  B.  directly  to  the  Ledger,  what  entries 
are  made  in  the  Day  Book?  43.  Why  are  erasures  not  allow- 
able in  the  Day  Book?  44.  Mention  a  transaction  which  re- 
quires an  entry  in  both  Day  and  Cash  Books.  45.  How  may 
an  error  be  corrected  in  the  Day  Book,  and  in  the  Ledger? 
46.  How  often  are  accounts  closed  in  the  Ledger?  47.  How 
can  you  test  the  accuracy  of  the  Ledger  before  closing?  48. 
When  is  a  note  entered  in  the  Day  Book?  49.  What  books 
may  be  combined  and  used  as  one  book? 

The  following  questions  may  be  asked  at  the  close  of  each 
set:    1.    In  what  way  can  you  ascei*tain  that  you  have  posted 

51 


GENERAL  REVIEW  QUESTIONS. 

all  tlie  accounts  t  2.  What  was  your  net  capital  at  commencing  j 
at  closing  t  3.  What  was  the  amount  of  cash  on  hand  at  start- 
ing; at  closing T  4.  Where  found!  5.  Mention  the  Ledger 
accounts  which  have  balances  due  you.  6.  What  are  these  bal- 
ances called !  7.  Mention  the  Ledger  accounts  having  balances 
that  you  owe.  8.  What  are  these  balances  called  t  9.  How 
do  you  make  a  balance  sheet,  and  why!  10.  What  will  your 
Bill  Book  showt  11.  Your  Invoice  Book!  12.  Your  Sales 
Bookf  13.  How  do  you  find  the  loss  or  gain!  14.  What  is  to 
be  done  with  bad  debts  in  making  the-  balance  sheet  T 

In  the  following  "sets"  when  the  manner  of  the  sale  is  not  stated  "on  ^" 
is  understood.  Notes  in  which  time  is  omitted  may  be  considered  as  dne 
in  one  year. 


EXERCISES  FOR  THE  STUDENT. 

After  the  completion  of  the  first  three  or  four  of  the  follow- 
ing sets,  the  Invoice  and  the  Sales  Book  are  to  be  kept  in 
addition  to  the  Day  Book,  Cash  Book,  Bill  Book,  and  Ledger. 
It  is  often  advisable  to  substitute  the  names  of  students  for 
those  given  in  the  memoranda. — Require  students  to  prepare 
"business  papers"  as  indicated  in  the  first  and  second  sets. 

Set  1.  Vallejo,  July  1,  1883.  Wm.  Megarry  commenced 
business  with  cash^  $1200;  merchandise,  $1800;  an  accH  against 
Wm.  Crowhurst,  of  $106.50. 

July  2.  Bo't  of  J.  Brooks,  for  cash,  invoice  of  Mdse.,  $480. 
3.  Sold  H.  D.  Richardson,  on  <5fc,  1  cheese,  28  ;ff,  @  20^;  4;^ 
raisins,  @  25^  (make  out  the  bill).  4.  Sold  James  Graham, 
on  <5fc,  5;^  molasses,  @  70^;  600  J^  flour,  @  $1.75  per  C;  and 
bo^t  of  him  25  water-melons,  @  15f .  5.  Paid  cash  for  drayage, 
$5.50.  6.  Cash  sales  to  date,  $89.80.  8.  Sold  H.  D.  Richard- 
son, bill  of  Mdse.,  $48.40,  and  received  cash,  $20.  9.  Bo't  of 
Amos  C.  Keene,  on  (jhj  bill  of  Mdse.,  $180.  10.  Rec'd  cash,  on 
^,  of  Wm.  Crowhurst,  $50.  11.  Gave  Amos  C.  Keene,  an  order 
on  Wm.  Crowhurst  for  $20  (write  the  order).  12.  Cash  sales 
from  6th  inst.  to  date,  $63.  14.  Sold  Amos  C.  Keene,  on  % 
500  }^  bacon,  @  18^;  200  J^  rice,  @  6i^.  15.  Henry  Allen  has 
worked  for  us  8J  days,  picking  fruit,  @  $2.50;  he  has  rendered 

52 


EXERCISES  FOR  THE   STUDENT. 

his  bill  and  we  have  credited  him  with  the  amt.  (write  the  bill). 
16.  Wm.  Crowhurst  has  paid  cash  in  full  to  balance  his  acc't 
(write  the  receipt).  17.  Debit  our  clerk,  John  Eastman,  with 
3;K  tea,  @  50^;  250  ;ff  flour,  $7.75;  1  ham,  $2.25.  18.  Sold 
James  Graham,  biU  of  Mdse.,  $43.80;  and  received  of  him  13  If 
eggs,  @  28^;  120  ;ff  peaches,  @  3^.  20.  Cash  sales  from  12th 
inst.  to  date,  $56.90.  21.  Sold  Chas.  Fogg,  on  %  bill  of  Mdse., 
$27.60.  22.  Debit  our  clerk  with  80  if  sugar,  @  13^.  23.  Paid 
Amos  C.  Keene  cash,  on  «!^,  $25.  24.  Sold  H.  D.  Richardson, 
on  ojc,  70  ff  dried  peaches,  @  15^.  Bo^t  of  Brooks  &  Co.,  for 
cash,  invoice  of  Mdse.,  $120.  26.  Sold  Henry  Allen,  on  <5fc,  30 
if  bacon,  @  16^.  27.  Sold  Albert  Knorp,  on  %  2J  tons  of 
bran,  @  $8;  200;^^  potatoes,  @  IJ^.  28.  Sold  Henry  Allen, 
on  ojc,  biU  of  Mdse.,  $18.60;  30.  Cash  sales  from  20th  inst.  to 
date^  $68.40.  Credit  our  clerk  with  one  month's  salary,  $75. 
Took  an  inventory  and  found  Mdse.  on  hand,  $2360. 

Set  2.  Eureka,  Sept.  1,  1883.  Student  commenced  business 
with  resources  as  follows:  cashj  $825;  Mdse.,  as  per  inventory, 
$1400;   tools,  etc.,  $250.     He  owes  Philip  Prior,  on  ojc,  $325. 

Sept.  2.  Sold  C.  R.  Pinkerton,  on  ^,  5,000;^  pine  boards, 
@  $18  per  M.;  10,000  shingles,  @  $2.75  per  M.;  2,000  rough 
jjickets,  @  $20  per  M.  3.  Bo't  of  Smith  &  Co.,  for  cash,  in- 
voice of  lumber,  $520.  4.  Sold  S.  A.  Reddy,  on  fl|6,  6,000;^ 
redwood — rough,  @  $18  per  M. ;  1,500  if  redwood  studding,  @ 
$22  per  M.  5.  Sold  Amos  Dean,  1,850  if  flooring — Oregon  pine, 
@  $38  per  M.;  1,600  ;^  No.  1  rustic,  @  35  per  M.;  rec^d  cash, 
$20.  6.  Sold  David  Pratt,  on  note  at  30  ds.,  bill  of  lumber, 
$160.  (write  the  note).  7.  Rec'd  cash,  on  <%,  of  S.  A.  Reddy, 
$60..  8.  Paid  cash  for  wagon,  $120.  9.  Sold  J.  L.  Randall, 
on  <^,  10,000  if  redwood— surfaced,  @  $32  per  M.;  2,500  if  shakes, 
@  $10.50  per  M.  11.  Gave  Philip  Prior  an  order  on  C.  R. 
Pinkerton  for  $75  (write  the  order).  12.  Debit  our  clerk,  Peter 
Careful,  with  cash,  $20.  13.  Sold  Wm.  Ogden,  on  o^,  25,000  if 
battens,  @  $40  per  M.;  800  redwood  posts,  @  $13  per  C.  14. 
Rec'd  cash  of  C.  R.  Pinkerton,  to  balance  account  (write  the 
receipt).  15.  Paid  Philip  Prior  cash,  on  ojc,  $100.  16.  Rec'd 
of  Amos  Dean  his  note,  due  in  six  months,  interest  at  10%  per 

53 


EXERCISES  FOR  THE   STUDENT. 

annum,  to  balance  account.  18.  Sold  T.  R.  Crawford,  on  ^fc, 
2,000  y  pine  scantling,  4x4,  @  $30  per  M.  19.  Rec'd  of  David 
Pratt,  (jash,  $40,  in  part  payment  of  his  note  of  the  6th  inst. 
(make  the  proper  endorsement  oh  the  note).  20.  Credit  our  clerk 
for  labor,  $20.  21.  Sold  WiUiam  Ogden,  on  <^,  15,000  laths,  @ 
$3.50  per  M.;  1,800  feet  rustic,  @  $28  per  M.  22.  Paid  cash 
for  drayage,  $10.50.  23.  Rec'd  an  order  from  Philip  Prior,  re- 
questing us  to  let  Calvin  Owen  have  $25  in  Mdse.  (write  the 
order).  24.  Sold  T.  R.  Crawfonl,  on  %  a  bill  of  lumber,  $76.80. 
25.  Took  an  inventory,  and  found  Mdse.  on  hand,  $390;  tools, 
fixtures,  etc.,  $300;  amt  due  on  notes,  $ ;   cash,  $ 

Set  3.  Petaluma,  May  5,  1883.  Wm.  Bacon  cx)mmenced 
business  witli  cash^  $300;   Mdse.,  $500. 

Bo't  of  Buckingham  &  Hecht,  for  casli,  80  J^  sole  leather,  @ 
46^;  24  prs.  carpet  slippers,  @  90^.  Sold  Fred  Williams,  on 
^y  1  pr.  calf  boots,  $8;  1  pr.  carpet  slippers,  $1.25.  ('ash  re- 
ceived for  sales,  $12.50.  6.  Paid  Buckingham  &  Hecht  cash, 
for  invoice  of  goods,  $67.50.  Sold  Oeo.  Titus,  on  <jh,  2  pr.  boys' 
boots,  @  $2.50;  1  pr.  slippers,  $1.75.  Sold  Geo.  Pease,  on  % 
1  pr.  ladies'  glove-kid  boots,  $4.75.  Cash  sales  to  day,  $16.25. 
7.  Bo't  of  Fred  Williams,  on  ^,  1  bottle  Vinegar  Bitters,  $1; 
4  bars  soap,  @  15^.  Cash  sales,  $10.  8.  Sold  Francis  Fowler, 
on  ^y  1  pr.  rubber  boots,  $4;  1  pr.  boys^  boots,  $3.  Debited 
Wm.  Sprowl,  $1.37,  for  mending  boots.  Paid  cash  for  freight, 
$3.50.  Cash  sales,  $17.  9.  Repaired  boots  for  Geo.  Titus  and 
charged  him  75^  on  <^.  Bo't  of  him,  on  %  30  jiff  butter  @ 
25^;  6;ff  eggs,  @  30^.  Cash  sales,  $13.50.  10.  Sold  S.  T. 
Bennett,  on  '^,  1  pr.  boots,  $6;  2  pr.  boys'  boots,  @  $5;  2  pr. 
ladies'  serge  boots,  @  $6.  Mended  boots  for  Geo.  Pease  and 
charged  him,  on  %  $1.50.  Paid  cash  for  street  sprinkling,  $1.50. 
Cash  sales,  $25.  12.  Bo't  of  Joseph  Hanson,  on  ^Ifc,  1  bbl.  flour, 
$5.75.  Paid  ISIrs.  Trusty  cash  for  cleaning  store,  $3.75.  Cash 
sales,  $11.50.  13.  Bo't  of  Fred  Williams,  on  <56,  3  ;^  vinegar, 
@  60^;  5  #  cider,  @  40^.  Sold  Geo.  Titus,  on  fl(fc,  1  pr.  brogans, 
$2.  Sold  Francis  Fowler,  on  <5fc,  1  pr.  slippers,  $1.  Debited 
Wm.  Sprowl  75^  for  mending  shoes.  G«o.  Pease  paid  us  cash, 
on  %  $5.     Cash  sales,  $15.75.     14.    Cash  sales  to-day,  $18.50. 

54 


EXERCISES  FOR  THE  STUDENT. 

15.  Cash  sales  to-day.  $23.  16.  Sold  Joseph  Hanson,  on  <5fc,  1 
pr.  rubbers,  85^;  1  pr.  ladies'  bronze  kid  boots,  $9;  1  pr.  slip- 
pers, $1.25.  Bo't  of  Geo.  Titus,  on  %  180;^  potatoes,  @  IJ^; 
25  Jiff  veal,  @  10^.  Sold  Fred  Williams,  on  %  1  pr.  rubbers, 
$1.  Paid  cash  for  stock,  $45.50.  Cash  sales,  $20.75.  17.  Sold 
Wm.  Sprowl,  on  <^,  1  pr.  children's  copper-toed  shoes,  $1.25; 
1  pr.  boys'  boots,  $3.25;  1  pr.  bidies'  congi*ess  boots,  $2.75;  1 
pr.  brogans,  $2.     Francis  Fowler  paid  us  cash  to  balance  his 

account,  $ Cash  sales,  $29.75.     19.    Sold' Geo.  Pease,  on 

%  1  pr.  kip  boots.  $7.50.  Sold  S.  T.  Bennett,  on  ^,  3  pr. 
children's  iiibbers,  @  65^ ;  1  pr.  ladies'  rubbers,  756*.  Paid  cash 
for  sawing  wood,  $3.25.  Cash  sales,  $14.75.  20.  Sold  Fred 
"Williams,  on  ^,  1  pr.  congress  gaiters,  $3.25.  Sold  Geo.  Titus, 
on  <^,  2  pr.  boys'  boots,  @  $3.50.  Bo't  of  him  5  chickens,  @ 
50^.  Sold  Francis  Fowler,  on  ^,  1  pr.  children's  bronze  kid 
boots,  $2.75.  Paid  cash  for  sundi'ies,  $2.40.  Cash  sales,  $17.50. 
21.  Cash  sales  to-day,  $21.50.  22.  Bo't  of  Joseph  Hanson,  on 
%  30;ff  gran,  sugar,  @  13^;  5  ;ff  coffee,  @  30^.  Sold  S.  T. 
Bennett,  on  ^,  1  shawl  strap,  75^.  Wm.  Sprowl  paid  cash,  on 
%  $5.  Cash  sales,  $25.75.  23.  Bo't  of  Fred  Williams,  on  ^, 
J  ream  of  paper,  75(.'.  Sold  Francis  Fowler,  on  ^,  1  pr.  chil- 
dren's rubbers,  65<?.  Rec'd  of  S.  T.  Bennett  cash,  on  %  $20. 
Cash  sales,  $19.25.  24.  Sold  Joseph  Hanson,  on  <56,  1  pr.  calf 
boots,  $8.  Sold  Geo.  Pease  1  pr.  cloth  gaiters,  $3.25.  Paid 
cash  for  stock,  $19.30.  Geo.  Pease  paid  cash,  on  <^,  $10.  Cash 
sales,  $27.  26.  Soled  1  pr.  boots  for  Fred  Williams  and  charged 
him,  on  ^,  $1.50.  Paid  cash  for  horse  hire,  $3.25.  Cash  sales, 
$16.50.  27.  Bo't  of  Geo.  Titus,  on  %  100;^  beets,  $1.50;  20  ff 
beans,  $1 ;  b  f^  <^ggs,  $1.50.  Sold  Joseph  Hanson,  on  ^,  1  pr. 
ladies'  serge  boots,  $3.25.    Cash  sales,  $19.    28.    Cash  sales,  $21. 

29.  Fred  Williams  paid  cash,  on  ^,  $10.     Cash  sales,  $23.75. 

30.  Bo't  of  Joseph  Hanson,  on  <}6,  20^  lai-d,  @  15^;  1  box 
raisins,  $1.25;  2  ff  tea,  $1.25.    Wm.  Sprowl  has  paid  cash  to 

balance  account,  $ Paid  clerk's  salary,  $30.     Cash  sales, 

$15.75.    Took  an  inventory  and  found  Mdse.  on  hand,  $250. 

Set  4.     San   Jose,  July  1,   1883.     Martin   H.   Lawson  com- 
menced business  this  day  with  the  following  assets  and  liabilities: 


EXERCISES  FOR  THE  STUDENT. 

cash,  $1500;  Jftfee.,  as  per  inventory,  $5000;  note  of  Caii  Allen, 
dated  June  1,  1883,  at  3  months,  for  $500,  and  a  note  of  D.  T. 
Mahoney,  for  $275,  dated  June  10,  at  60  days.  He  owes  E.  C. 
Roilwick,  $125  on  ^j  and  D.  S.  Snodgrass  holds  his  note  for 
$200,  dated  May  1,  at  4  months. 

July  2.    Sold  Frank  A.   Butts,  on  a^,  6  firkins  butter,  480 
;^,  @  22^;  40  tin  pails,  @  45?;   2,000  broom  handles,  @  50^' 
per  C.    3.  Pmd  cash  for  scales  and  measures,  $12.    Sold  BlanchB 
Krahl,  on  %  2(X)  ;j^  sugar,  @  12J?,  150  ;^  salt,  @  IJ?.    4.  Sold 
W.  S.  Bailey„  on  note  at  30  days,  50  sacks  Liverpool  salt,  @ 
$1.25.     Rec»d  cash  for  petty  sales,  $36.80.     5.   Rec'd  of  Carl 
Allen  a  cliectk  on  Bank  of  San  Jose  for  $100,  jiart  payment  of 
his  note  of  1st  inst.    6.   Discounted  our  note,  favor  of  D.  S. 
Snodgrass,  pacing  him  $190  for  same.    Frank  A.  Butts  returned 
1  firkin  of  butter,  80  J!^,  bo^t  of  us  on  the  2d  inst.    8.  Sold  F. 
H.  Ottmer,  on  <5fc,  50  lilf.  boxes  raisins,  @  $1.50;  25  boxes  Los 
Angeles  lemons,  @  $2.25.    Rec'd  c^i,  on  <^,  of  Blanche  Ki-ahl, 
$10.    9.    Paid  wish  for  chui-ch  subscription,  $10.     Sold  L.  A. 
Lehnig,  275;^  rice,  @  6Jf^;  40;^  Eastern  ham,  @  16J?;  500 /:f^ 
flour,  @  $3.25   per  C;   rec'd  in  exchange,  15  ;ff  eggs,  @  30^; 
balance  on  f]c.    10.  Paid  Ciish  for  street  sprinkling,  $2.50.     11. 
Rec'd  cash  for  petty  sales,  $40.     Sold  W.  S.  Bailey,  on  <}fc,  5  ;f^ 
kerosene,   @  40?;    10  cans  apricots,   ®   25?;    10;^  coffee,   (ffi 
16?;  5;!ff  tea,  @  60?.    12.   Bo't  of  Lake  &  Co.,  on  %  SOO  ;j( 
rice,  @  6?;   100;^  lai-d,  @  15?;    80;^  tobacco,  @  40?.    Rec'd 
cash  on  ^  of  Frank  A.   Butts,  $75.    Paid  cash  for  drayage, 
$4.50.    13.    Grave   our  clerk,   George   Hothersall,   an   order  on 
F.  H.  Ottmer  for  $25  in  Mdse.    14.   Loaned  John  Curtis,  $40. 
Discounted  note  of  D.  T.   Mahoney  of  the   1st  inst.,  at  Com- 
mercial Bank,  and  received  $265.    Bo't  of  Hal  Needhani,  on  <?fc, 
50  ^  stove  wood,  @  $6.     15.   Bo't  of  Frank  A.  Butts,  on  (^, 
25  turkeys,   @  $1.10.     16.   Martin  H.   Lawson   drew    out  $50 
cash,  for  personal  use.     17.   Paid  E.   C.   Rodwick  cash,  on  % 
$60.      18.    Sold    Leon   Taylor,   500  Jj^   Lima  beans,   @  4?;    60 
centals  seed  wheat,  @  $1.60;  40  centals  barley,  @  $1.40;   rec'd 
his  note  for   $100   at   30  days,  balance   on   ^.     19.    Burglars 
broke  into  the  store  and  took  $100  in  cash.     Rec'd  an  order 
from  E.  C.  Rodwick  requesting  us  to  pay  John  Utter  $25  in 

56 


EXERCISES  FOR  THE   STUDENT. 

Mdse.  20.  Sold  L.  A.  Lehnig,  on  ojc,  200  f^  salt  pork,  @  18^j 
400  :^  dried  prunes,  @  14^*.  21.  Sold  Henry  Doubtful,  on  ^, 
75  centals  barley,  @  $1.45.  22.  Sold  Peter  Slowboy,  on  % 
1,100  y^  sugar,  @  13^  j  180  jif^  bacon,  @  20^.  23.  Sold  Leon 
Taylor,  on  ofc,  125  #  dried  peaches,  @  16^.  24.  Sold  Blanche 
Krahl,  on  %  1  cask  pickles,  80  ;ff,  @  10^.  25.  Bo't  of  L.  A. 
Lehnig,  on  ^,  25  ;ff  wood,  @  $6.  Sold  Frank  A.  Butts  40 
boxes  cigars,  @  $1.25;  rec'd  cash,  $20,  balance  on  o;6.  Paid 
Lake  &  Co.  cash,  on  %  $60.  26.  Peter  Slowboy  has  failed, 
and  we  have  rec'd  from  him,  cash,  25<^  on  the  dollar  for  amt. 
due  us.  Credit  our  clerk,  Geo.  Hothersall,  with  salary  for  one 
month,  $75.  27.  Rec'd  cash  for  petty  sales,  $48.60.  28.  Henry 
Doubtful  has  left  the  State,  and  we  have  lost  the  amount  due 
us.  29.  Took  an  inventory  and  found  Mdse.  on  hand,  $4960,- 
notes,  $ ;  cash,  $ 

Set  5.  In  this  set  keep  the  account  with  the  bank  either  in 
the  Cash  Book,  or,  if  you  prefer,  in  the  Ledger. 

Oakland,  Oct.  1,  1883.  G.  W.  Congdon  commenced  business 
with  easily  $1100;  Mdse.,  $1000;  and  an  account  against  Kate 
Montgomery  of  $65.      He  owes  Field  &  Co.,  on  ojc^  $120. 

Put  $800  in  Bank  of  San  Jose.  2.  Bo't  of  N.  Murray  & 
Co.,  for  cash,  1  bolt  Merrimack  prints,  120  ff,  @  10^ ;  60  prs. 
kid  gaiters,  @  $2.50.  Sold  Frank  Graham,  on  ^J^,  1  pr.  calf 
boots,  $7.50;  10  boxes  paper  collars,  @  20^.  Sold  Mary  Har- 
riman,  16  ;ff  English  prints,  @  22^;  1  pr.  kid  gloves,  $1.75;  1 
pr.  kid  gaiters,  $3.25;  rec'd  cash,  $5,  balance  on  ^.  Cash  sales, 
to-day,  $21.60.  3.  Sold  Fred  Cauch,  on  %  S  fj^  English  tweed, 
@  $1.75;  2Aff  Lynn  cottons,  @  12J^.  Paid  Field  &  Co.,  on 
(^,  $50,  by  check  on  Bank  of  San  Jose.  Cash  sales,  $31.25.  4. 
Sold  Mary  Harriman,  on  ^,  20  f^  fancy  linens,  @  25^;  1  silk 
scarf,  $1.25.  Put  $80  in  Bank  of  San  Jose.  Sold  Frank  Graham, 
on  afc,  40  ;f^  canvas,  @  20^;  1  trunk,  $5.50;  1  pr.  gum  boots, 
$4.50.  Bo't  of  Field  &  Co.,  by  check  on  Bank  of  San  Jose, 
10  pieces  fancy  cassimeres,  220  ;^,  @  80^.  Cash  sales  to-day, 
$40.  5.  Sold  Fred  Cauch,  on  <^,  1  doz.  handkerchiefs,  $2.25. 
John  Ames  has  worked  for  us  5  days  repairing  fence,  @  $2.50 
per  day;   we  let  him  have  8  prs.  socks,  @  50^,  balance  on  <5fc. 

57 


EXERCISES  FOR  THE  STUDENT. 

Cash  sales,  $24.60.  6.  Paid  cash  for  newspapers,  $4.  The 
proprietor  has  taken  16  if  Lancaster  gingham,  cost  10^  per  ;|ffj 
1  pr.  gaiters,  $3.50.  Sold  Lena  Dranga,  on  ^,  10  jf  crash,  @ 
20^;  1  tiible-cover,  $3.25;  1  clothes-line,  $1.25.    Cash  sales,  $38.50. 

8.  Put  $50  in  Bank  of  San  Jose.  Gave  Field  &  Co.  an  order 
on  Kate  Montgomery  for  $50.  Bo't  of  Fred  Cauch,  on  ojc^  80 
if  Lima  beans,  @  4J^;    1  doz.  quail,  $1.50.     Cash  sales,  $30. 

9.  Sold  John  Ames,  on  ojr.,  4  shirts,  @  $1.50.  Rec'd  cash,  on  <5fc, 
of  Frank  Graham,  $12.  Paid  cash  for  drayage,  $2.50.  Sold 
Henry  Artful,  on  <jfc,  30  ;K  English  broadcloth,  @  $2.25.  Cash 
sales,  $38.25.  10.  Casli  sales,  $108.50.  11.  Put  $80  in  Bank 
of  San  Jose.  Paid  our  clerk.  Amy  Whatmore,  $40,  by  check 
on  Bank  of  San  Jose.     Cash  sales,  $88.40.     12.    Rec'd  Henry 

Artful's  note,  at  60  days,  to  balance  his  acc't,  $ Paid  cash 

for  gas,  $2.75.  Sold  Fred  Hazard,  on  ^,  16  linen  collars,  @ 
25f ;  6  white  shirts,  %  $2.50;  6  pr.  socks,  @  50^.  Cash  sales, 
$40.30.  13.  Put  $40  in  Bank  of  San  Jose.  Bo't  of  Jennie 
Hale,  on  ojc,  6  doz.  silk  hkdfs.,  @  $4.50;  3  pes.  cassimere,  150  ;f^ 
@  75?.  Cash  sales,  $18.20.  14.  Sold  John  Ames,  on  ojc,  25  if 
bleached  muslin,  %  12?;  1  pr.  slippers,  $1.25.  Rec'd  an  order 
from  Jennie  Hale,  requesting  us  to  pay  Virginia  Calhoun  cash 
$20.  Cash  sales,  $16.50.  15.  Credit  our  clerk  with  two  weeks' 
salarj',  $60.  Henry  Artful  has  failed  and  his  note  is  worthless. 
On  examination  of  our  cash  we  fijid  $10  counterfeit.  Took  an 
inventory  and  found  Mdse.  on  hand,  $900. 

Set  6  (a).  June  1,  1890.  Student  commenced  business  with 
cash,  $980;  a  note  of  James  Preston,  for  $500;  and  an  account 
against  Orra  J.  Traber  of  $128.  Student  owes  Cyrus  Gaddis, 
on  %,  $85.  2.  Deposited  $925  in  Garden  City  Bank.  Bo't  of 
Holland  &  Co.,  a  bill  of  Mdse.,  $800,  gave  them  a  check  on  G.  C. 
Bank  for  $500. — Bal.  on  %.  Received  an  order  from  James 
Preston  on  Cyrus  Gaddis  for  $200,  to  apply  on  Preston's  note. 
Sold  Wm.  Pettit  a  bill  of  Mdse.,  $290,  and  received  cash,  $190.— 
Bal.  on  %.  Gave  Cyrus  Gaddis  a  check  on  G.  C.  Bank  for  $60. 
3.  Deposited  $325  in  G.  C.  Bank.  Sold  Charles  Smartman  a  bill 
of  Mdse.,  $210,  and  received  a  check  for  $100.— Bal.  on  %.  Bo't 
a  bill  of  Mdse.  of  Clyde  Ray,  $300,  gave  him  our  note  for  $200, 
and  a  check  on  G.  C.  Bank  for  Bal.  Smartman  has  failed,  and 
we  havft  received  20%  of  am't  due  us  in  cash.  4.  Took  an  inven- 
tory and  found  Mdse.  on  hand  $700. 

68 


EXERCISES   FOR  THE  STUDENT. 

Set  6(b).  January  1,  1890.  Student  commenced  business 
with  cash,  $690;  Mdse.  $2,000.  Student  owes  Fred  Ogden,  $200 
on  note.  Sold  Harding  Kennedy  a  bill  of  Mdse.,  $170,  and 
received  an  order  on  Fred  Ogden  for  $100. — Bal.  on  %.  Sold 
Inez  Tarr  a  bill  of  Mdso.,  $186,  and  received  a  check  for  $100. 
—Bal.  on  %.  2.  Paid  Fred  Ogden  $100  on  note.  Bo't  of  Chas. 
Kirby  a  bill  of  Mdse.,  $216,  and  gave  him  an  order  on  Inez  Tarr 
for  $75,  an  order  on  Harding  Kennedy  for  $70. — Bal.  on  %. 

3.  Sold  Fred  Ogden  on  %,  a  bill  of  Mdse.,  $163.50.    Sold  Henry 
Peters  on  note,  a  bill  of  Mdse.,  $270.     Paid  cash  for  rent  $65. 

4.  Took  an  inventory  and  found  Mdse.  on  hand,  $1,710. 

Set  6  (C).  May  1,  1892.  Student  commenced  business  with 
cash,  $1,260;  Mdse.,  $1,100.  Deposited  $1,200  in  Union  Bank. 
Bo't  a  bill  of  Mdse.  of  Webb  &  Co.,  $364,  and  gave  a  check  on 
Union  Bank  for  the  amt.  2.  Sold  Frank  Whipple  a  bill  of  Mdse. 
$295.50,  and  received  a  check  on  Union  Bank  for  $200. — Bal.  on 
%.  Sold  Eli  Harter  a  bill  of  Mdse.,  $340,  and  received  a  note 
for  $250. — Bal.  on  %.  Credit  Henry  Jones  for  5^  days'  work 
at  $3.00  per  day.  Sold  Bert  McNeil  a  bill  of  Mdse.,  $200 
on  %.  Gave  Henry  Jones  an  order  on  Frank  Whipple  for  am't 
due  him.  Bo't  Mdse.  of  Webb  &  Co.,  $300,  and  gave  a  check  on 
Union  Bank  for  $200.— Bal.  on  %.  3.  Sold  our  entire  stock  of 
Mdse.  for  $1,050  cash. 

Sets  (d).  Sept.  1,  1891.  Student  commenced  business  with 
cash,  $3,600,  and  an  account  against  John  Tennant  of  $180.  Bo't 
a  bill  of  Mdse.,  $1,760,  of  Rice  &  Co.,  and  paid  cash,  $1,500.— Bal. 
on%.  Deposited  $2,000  in  Merchants' Bank.  2.  Hired  Chas.  Bur- 
rell  to  clerk,  at  a  salary  of  $80  per  month.  Sold  Addie  Beck 
Mdse.,  $190.25,  and  received  her  note  for  that  amount.  Sold 
Ralph  Burns  a  bill  of  Mdse.,  $210,  and  received  cash,  $175. — Bal. 
on  %.  3.  Bo't  a  bill  of  Mdse.  of  Enid  Bell,  $300,  and  gave  her 
Addie  Beck's  note. — Bal.  on  %.  Sold  George  May  Mdse.,  $416, 
and  received  a  check  on  Merchants'  Bank  for  $300. — Bal.  on  %. 
4.  Gave  our  clerk  a  check  an  Merchants'  Bank  for  $20.    Paid  for 

59 


EXERCISES  FOR  THE  STUDENT. 

advertisiDg  $30,  by  check  on  Merchants'  Bank.  Received  an 
order  from  John  Tennant  on  Ralph  Burns  for  $100,  to  apply  on 
Tennant's  %.  5.  Credit  our  clerk  with  salary  to  date,  $18.  Took 
an  inventory  and  find  Mdse.  on  hand,  $1,243.75. 

Set  6  (e).  March  1,  1892.  Student  commenced  business 
with  Mdse.,  $3,400;  cash,  $360.  Sold  Jas.  Gordon  Mdse.,  $462, 
and  received  his  note  for  $400. — Bal.  on  %.  Sold  George  Little 
Mdse.,  $300,  and  received  cash,  $186. — Bal.  on  %.  Paid  cash  for 
wood,  $25.  2.  Sold  Ida  Parry  Mdse.,  $315,  and  received  an  order 
on  Jas.  Gordon  for  $160. — Bal.  on%.  Bo't  Mdse.  of  Lawton  & 
Co.,  $420,  and  gave  an  order  on  Ida  Parry  for  $100.— Bal.  on  %. 
3.  Discounted  Gordon's  note  at  Bank  of  San  Jose,  and  received 
$388  iu  cash  for  it.  Sold  Ida  Parry  Mdse.,  $194,  on  %.  Little 
has  failed  and  we  lose  the  am't  due  us.  Sold  Jas.  Gordon,  on  %, 
Mdse.,  $170.  4.  Paid  Lawton  &  Co.  am't  due  them  in  cash. 
Took  an  inventory  and  find  Mdse.  on  hand,  $2,400. 

Set  6  (f ).  Aug.  1,  1890.  Student  commenced  business  with 
Cash,  $6,000,  and  a  note  against  Henry  Owen,  $280. 

Aug.  2.  Deposited  $5,800  in  Garden  City  Bank.  Bo't  Mdse 
of  Swan  &  Co.,  $2,800,  and  gave  a  Check  on  G.  C.  Bank  for  the 
am*t.  Sold  Chas.  Ames,  Mdse.,  $265.50,  and  rec'd  a  Check  for 
$150. — Bal.  on  %.  Bo't  coal  for  store  use,  $85,  and  gave  a  check 
on  G.  C.  Bank  for  the  am't.  Sold  Geo.  Smaller  Mdse.  $70,  and 
rec'd  his  check  for  the  am't. 

Aug.  3.  Henry  Owen  paid  us  Cash  on  his  note,  $75.  Sold 
Peter  Slim,  Mdse.,  $310,  and  received  his  note  for  the  am't.  Bo't 
Mdse.  of  Ira  Parker,  $700,  and  gave  Slim's  note  in  part  payment. 
— Bal.  on  %.  Smaller's  check  is  worthless,  and  he  has  disap- 
peared. Sold  V.  Rattan  Mdse.,  $285,  and  received  his  note  for 
$100,  an  order  on  Henry  Owen  for  $100.— Bal.  on  %. 

Aug.  4.  Sold  Chas.  Ames,  Mdse,  $290,  and  rec'd  an  order  on 
Henry  Owen  for  $200. — Bal.  on  %.  Deposited  all  Cash  on  hand 
in  G.  C.  Bank.  Paid  for  incidentals  by  check  on  G.  C.  Bank, 
$28.50.  Took  an  inventory  and  find  Mdse.  on  hand,  $2,700,  and 
coal,  $57. 

60 


EXERCISES   FOR  THE   STUDENT. 

Set  7.  San  Jose,  May  1,  1888.  James  Black  com  me  need 
business  this  day  with  the  following  Assets  and  Liabilities: 
Cash,  $1,750;  Mdse,,  $2,000;  Acct.  against  Adam  Alvarez, 
$200.  He  owes  one  Note,  dated  April  10,  1888,  at  6  mos., 
favor  Richard  Cotter,  for  $250. 

May  2.  Paid  for  sets  of  books,  $24.  Deposited  in  Com- 
mercial Bank,  $1,650.  Sold  Fred  Brunhouse,  on  ^,  1  sofa, 
$18;  6  parlor  chairs,  @  $5;  1  table,  $22. 

May  3.  Paid  for  freight,  $16.25.  Bo^t  of  San  Jose  MTg 
Co.,  an  invoice  of  furniture  amounting  to  $450;  gave  our 
note  at  90  days  for  $300.— Bal.  on  ^.  Sold  Bonnie  Ford, 
1  book-case,  $30;  1  rocker,  $7.50;  received  an  order  on 
Malsie  Livingston  for  $15. — Bal.  on  ^. 

May  4.  Bo*t  an  invoice  of  Mdse.  of  the  San  Jose  MTg 
Co.,  $300,  and  gave  a  check  on  the  Commercial  Bank  for 
the  Amt.  Sold  Walter  Gray,  1  what-not,  $13.50;  1  doz. 
common  chairs,  $12;  40  yds.  Brussels  carpeting,  @  $1.50; 
received  cash,  $40. — Bal.  on  ^.  Paid  cash  for  advertising, 
$12.50. 

May  5.  Adam  Alvarez  paid  cash  on  ^,  $50.  Paid  $100 
on  our  note,  held  by  R.  Cotter,  by  check  on  Commercial 
Bank.  Fred  Brunhouse  paid  cash  for  his  bill,  but  we 
allowed  a  discount  of  $6,  on  account  of  a  defect  in  sofa. 

May  7.  Paid  cash  for  gas,  $7.50.  Received  cash  for 
petty  sales,  $10.50.  Sold  Mamie  Lowe,  1  bureau,  $30;  1 
bracket,  $4.50;  1  lounge,  $18;  received  cash,  $20. — Bal.  on  ^. 

May  8.  Adam  Alvarez  gave  his  note  at  90  days  to  balance 
his  Acct.  Sold  Walter  Sumner,  1  wardrobe,  $32;  1  book- 
case, $40;  4  chairs,  $12,   received  cash,  $25. — Bal.  on   ^. 

May  9.  Sold  Bonnie  Ford,  on  ^,  6  chairs,  @  $2.50,  26 
yds.  carpeting,  @  $1.30.  Paid  cash  for  incidentals,  $8.75. 
Received  cash  for  petty  sales,  $21.10. 

May  10.  Bo'tof  T.  S.  Hays,  1  light  wagon,  $125,  gave 
him  an  order  on  Walter  Gray  for  $45. — Bal.  on  ^.  Depos- 
ited in   Commercial  Bank  all  cash  in  store. 

May  11.  Sold  Walter  Gray,  on  ^,  1  music  stool,  $8.50. 
Sold  T.  S.  Hays,  on  ^,  1  doz.  dining  chairs,  @  $1.50  each. 
Received  for  petty  sales,  $18.90.  Mdse.  in  store  at  this 
date,  $2400. 

61 


NEW  FIRM. 

May  12.  James  Black  has  this  date  associated  with 
him  in  business  H.  C.  Clark.  Mr.  Clark  deposits  in  Com- 
mercial Bank,  an  amount  equal  to  Mr.  Black's  net  capital 
on  May  12,  and  is  to  share  equally  in  gains  and  losses  after 
that  date.  (Student  will  close  all  accounts,  May  12,  and 
bring  down  balances, — making  out  a  Balance  Sheet  for 
Mr.  Clark's  inspection.) 

May  14.  Received  cash  for  petty  sales,  $22.30.  Sold 
Emma  Tupper,  on  <^,  1  bureau,  $34.  Sold  Adam  Alvarez, 
1  portable  secretary,  $35;  1  washstand,  $8.50;  1  study 
lounge,  $20;  received  cash,  $20. — Bal.  on  ^. 

May  15.  Paid  $45  for  rent,  by  check  on  Commercial 
Bank,  received  cash  for  petty  sales,  $19.25.  Sold  T.  S. 
Hays,  on  ^,  1  rosewood  tete-a-tete,  $40. 

May  16.  Bo't  an  invoice  of  Mdse.  of  Rose  &  Co.,  Amt., 
$125,  and  gave  a  check  on  Commercial  Bank  for  $100,  and 
an  order  on  Emma  Tupper  for  $25. 

May  17.  Received  cash  for  petty  sales,  $22.10.  Paid 
cash  for  incidentals,  $3.25.  Sold  Bonnie  Ford,  on  ^,  1 
mantel  clock,  $15.  Sold  Walter  Gray,  1  center  table, 
$14.50;  1  lot  black  walnut  lumber,  $50;  and  received  an 
order  on  F.  Arbogast  for  $25. — Bal.  on  ^. 

May  18.  Received  cash  on  ^  of  Bonnie  Ford,  $10. 
Sold  Richard  Cotter,  on  ^,  1  lot  of  maple  lumber,  $75. 
Received  cash  for  petty  sales,  $21.25. 

May  19.  Sold  T.  M.  Hawkins,  on  note  at  6  mos.,  a  bill  of 
Mdse.,  $100.  Sold  Mamie  Lowe,  on  ^,  a  bill  of  Mdse., 
$45. 

May  21.  Paid  cash  for  advertising,  $15.  Sold  Walter 
Gray,  on  ^Jfc,  6  parlor  chairs  @  $5.50.  Sold  Walter  Sumner, 
on  'Jfc,  1  hair  mattress,  $15. 

May  22.  Sold  George  Aimless,  on  ^,  a  bill  of  Mdse., 
$110.  Found  a  counterfeit  five-dollar  bill  in  cash  drawer. 
Received  Cash  for  petty  sales,  $36.50. 

May  23.  Sold  Richard  Cotter,  1  cottage  bedstead,  $18; 
1  set  enameled  furniture,  $80;  received  cash,  $25. — Bal. 
on  'Jfe.     Loaned  Henry  Miller,  cash,  $50. 

May  24.  Sold  George  Tebbe,  on  ^,  a  bill  of  Mdse.,  $74. 
Geo.  Aimless  has  failed  and  we  have  received  30%  of  Amt. 
due  us  by  order  on  Geo.  Tebbe. 

62 


NEW   FIRM. 

May  25.  Sold  Henry  Miller,  on  ^,  220  ft.  black  walnut 
lumber,  @  $150  per  M.  Received  cash  for  petty  sales, 
$18.70.     Paid  cash  for  incidentals,  $6.20. 

May  26.  Sold  Walter  Gray,  on  ^,  a  bill  of  Mdse.,  $48.20. 
Sold  Geo.  Tebbe,  1  set  maple  furniture,  $120,  received 
an  order  on  Amelia  Meyer,  for   $75. — Bal.  on  ^. 

May  27.  Sold  Adam  Alvarez,  on  ^,  a  bill  of  Mdse.,  $50. 
Paid  cash  for  newspapers,  $6.  Received  cash  on  ^  of 
Henry  Miller,  $20. 

May  28.  Discounted  our  note,  dated  May  3,  favor  S.  J. 
MTg  Co.,  and  paid  $290  by  check  on  Commercial  Bank. 
Sold  Richard  Cotter,  on  ^,  40  yds.  English  carpeting,  @ 
$1.60. 

May  29.  Mamie  Lowe  returned  a  defective  clock  and  we 
credit  her  for  value,  $12.  Sold  Walter  Sumner,  on  ^,  1 
black  walnut  bedstead,  $30.     Paid  cash  for  incidentals,  $10. 

May  30.  Took  an  Inventory  and  find  Mdse.  in  store, 
$1,370. 

EXAMPLES  FOR  STATEMENTS. 

Example  1.  A  and  B  are  equal  partners,  each  investing 
$5,500.  At  the  end  of  the  year  they  wish  to  take  C  into  co- 
partnership, upon  condition  that  he  invest  equally  with 
them.  The  following  is  a  statement  of  their  business 
previous  to  uniting  with  C:  Ledger  Accts.,  —  Georgia 
Thatcher,  Dr.,  $800,  Cr.,  $650;  George  Albee,  Dr.,  $3,000, 
Cr.,  $1,200;  Carter  Elliott,  Dr.,  $1,890,  Cr.,  $780;  Rose 
Clark,  Dr.,  $580,  Cr.,  $720;  John  Hughes,  Dr.,  $4,000,  Cr., 
$2,100;  Celia  Daniels,  Dr.,  $1,500,  Cr.,  $1,100;  L.  B.  Keel, 
Dr.,  $870,  Cr.,  $420;  Merchandise  unsold,  $3,200;  Notes  on 
hand,  $3,000;  Notes  outstanding,  $1,200;  Cash  on  hand, 
$1,650.  Required,  a  statement  showing  gain  or  loss,  and 
net  capital  of  each  partner  at  closing. 

Example  2.  C  and  D  enter  into  co-partnership,  C  to 
furnish  $6,000,  and  D  to  furnish  $4,000;  gains  and  losses 
to  be  shared  proportionately.  At  the  end  of  the  year  they 
have  ca«h,  $2,980;  Personal  Accts.,  $1,600;  Merchandise, 
$8,700;  Notes,  $1,875;  they  owe,  on  notes,  $2,000;  on  per- 
sonal Accts.,  $2,800.  Required,  gain  or  loss  in  business; 
each  partner's  capital  at  closing. 

63 


EXAMPLES   FOR  STATEMENTS. 

Example  3.  A,  B  and  C  are  partners.  A  puts  into  the 
concern,  $7000;  B,  $5,000,  and  C,  $4,000.  At  the  close  of 
the  year  their  booka  exhibit  the  following  results:  Nellie 
Dav,  Dr.,  $1,650,  Cr.,  $400;  G.  M.  DeLameter,  Dr.,  $1,120, 
Cr/,  $850;  George  Boke,  Dr.,  $1,640,  Cr.,  $1,810;  Frank 
Lane,  Dr.,  $750.  Cash  received,  $42,820.25;  Cash  paid  out, 
$39,870;  Merchandise  on  hand,  $2,650;  Notes  received, 
$15,000;  Notes  disposed  of,  $13,500.  A  has  drawn  out, 
$1,000;  B,  $800;  C,  $500.  They  have  issued  notes  to  the 
amount  of  $3,500,  and  redeemed  notes  to  the  Amt.  of  $2,800. 
Required,  a  statement  exhibiting  all  these  facts,  also  gains 
or  losses,  and  each  partner's  net  capital  at  closing. 

Set  8.  Petaluma,  Jan.  1,  1888.  Geo.  A.  Tebbe  com- 
menced  business  as  a  farmer,  with  the  following  Resources 
and  Liabilities: 

160  acres  of  land,  valued  at  $10,0C0;  Buildings  and  fix- 
tures, $3,600;  Implements,  $300;  Live-stock,  $500;  Hay 
and  grain  on  hand,  $250;  Cash,  $400;  An  Acct.  against 
Willis  Parker  for  $100.  Mr.  Tebbe  owes  W.  W.  Cooper, 
on  ^f  $40,  and  O.  H.  Grubbs,  on  note  at  6  mos.  $150. 

Jan.  2.  Engaged  Henry  Tucker  for  the  year,  at  $25  per 
month,  and  paid  him  cash  down  $20.  Subscribed  for 
"Rural  Press",  paying  cash,  $2.50. 

Jan.  30,  I  am  trading  with  W.  M.  Greenwell  <fe  Co. 
They  are  to  render  a  bill  on  the  last  day  of  each  month. 
Rec'd  bill  to-day  for  $75.25;  I  pay  them  cash,  $25. — Bal. 
on  ^.     Rec'd  cash  for  eggs,  $4.25. 

Feb.  28.  Willis  Parker  paid  cash  on  ^,  $25.  Commenc- 
ed an  Acct.  with  Chas.  Nott,  blacksmith;  his  bill  for  month 
is  $15.50;  I  let  him  have  5  doz.  eggs  @  40c.,  and  cash,  $5. 
Greenwell  &  Co's  bill  for  month  is  $65.20.  My  man  and 
team  worked  for  Greenwell  <fe  Co.  5  days  @    $3.50  per  day. 

March  31.  Sold  Jennie  Mangrmn,  on  %,  10  lbs.  butter  @ 
30c.;  6  doz.  eggs,  @  25c.  Greenwell  &  Co's  bill  is  $81.10.  Nott's 
bill  is  $16.50.  I  paid  Greenwell  &  Co.  cash,  $20;  and  Nott,  cash, 
$10.     Deposited  $340  in  Commercial  Bank. 


EXAMPLES  FOR  STATEMENTS. 

April  30,  Paid  Henry  Tucker  $50,  by  check  on  Commercial 
Bank.  Sold  Blanche  Tarr,  on  %,  5  chickens  @  50c.;  6  lbs.  butter 
@  30c.;  2  boxes  apples,  @  $1.25.  Bill  of  Greenwell  &  Co.,  $35.20. 
Bill  of  Nott,  $10.     Rec'd  cash  for  eggs,  $12.50. 

May  31.  Gave  W.  W.  Cooper  an  order  on  Willis  Parker  for 
$40.  Paid  cash  for  incidentals,  $12.60.  Bill  of  Greenwell  &  Co. 
$42.10.  Bill  of  Nott,  $8.50.  My  team  has  worked  for  Greenwell 
&  Co.  4  days  @  $3.50.     Paid  cash,  S.  J.  Mercury,  $4. 

June  30.  Sold  A.  B.  McKean,  8  C.  of  wheat  @  $1.75;  10  lbs. 
butter  at  40c.;  received  cash,  $10. — Bal.  on  %.  Bill  of  Greenwell 
&  Co.  $54.     Bill  of  Nott,  $12.25. 

July  31.  Received  cash  for  butter  and  eggs,  $13.25.  Sold 
Mattie  Powell,  on  %,  250  lbs.  peaches  @  l^c;  40  lbs.  dried  cher- 
ries @  12c.  Greenwell  &  Co's  bill,  $70.  Nott's  bill,  $17.50.  Paid 
for  incidentals,  $14.25.  Paid  interest  on  note  held  by  0.  H. 
Grubb,  $7.50. 

Aug.  31.  Paid  Henry  Tucker,  $50  by  check  on  Commercial 
Bank.  Received  cash  for  eggs,  butter  and  vegetables,  $38.50. 
Paid  cash  for  incidentals,  $13.75.  Bill  of  Greenwell  &  Co.,  $60 
Nott's  bill,  $30.50.     Sold  Nott,  on  %,  4  pigs  @  $2.50. 

Sept.  30.  Bill  of  Greenwell  &  Co.,  $84.  Nott's  bill,  $20.  Re- 
ceived cash  for  butter  and  eggs,  $12.75.  Sold  James  Petray,  8  tons 
of  hay  @  $12;  and  received  cash,  $40. — Bal.  on  %.  Paid  cash 
for  incidentals,  $13.10. 

Oct.  31.  Paid  Greenwell  &  Co.,  $50  by  check  on  Commercial 
Bank.  Paid  for  incidentals,  $14.75.  Greenwell  &  Co's  bill,  $68.40. 
Nott's  bill,  $18.20.     Received  cash  for  butter  and  eggs,  $19.50. 

Nov.  30.  Nott's  bill,  $7.50.  Bill  of  Greenwell  &  Co.,  $45.15. 
Received  cash  for  butter  and  eggs,  $12.  Sold  Greenwell  &  Co.,  on 
%,  500  C.  of  wheat  @  $1.70.  Sold  for  cash,  20  tons  of  hay  @ 
$11.50.  Paid  note  held  by  0.  H.  Grubbs,  in  hay  @  12  per  ton; 
note  and  interest  being  $155.50. 

66 


EXAMPLES   FOR  STATEMENTS. 

Dec.  31.  Bill  of  Greenwell  &  Co.,  $28.30.  Nott's  bill,  $8.20. 
Settled  with  Henry  Tucker  and  paid  him  balance  due  him  in 
cash.  Took  an  Inventory  and  find  value  of  property  on  hand,  as 
follows:  Farm,  $10,200;  Buildings  and  Fixtures,  $3,400;  Imple- 
ments, $250;  Live-stock,  $600;  Hay,  Grain  and  Fruit,  $1,750. 
Interest  on  land,  etc.,  for  the  year,  $800.  Make  out  a  Statement 
showing  "Resources  and  Liabilities,  and  Gain  or  Loss. 

Set  9.  Rocklin,  Jan.  1,  1888.  W.  R.  Bankhead  opened 
a  blacksmith  shop  to-day.  Cash  on  hand  $225.  Shop  and 
tools  valued  @  $700. 

Jan.  2.  Paid  cash  for  iron,  $67.50.  Edward  Spinks  haul- 
ed the  iron  and  charged  us  $3  on  ^.  Shod  two  horses  for 
Edward  Spinks  and  charged  him  $4  on  ^. 

Jan.  3.  Mended  buggy  for  Amy  Davis  and  charged  $7.50 
on  ^.  Sharpened  iron  bar  for  L.  F.  Puter  and  charged 
him  $1.10,  on  ^,     Paid  cash  for  beef,  75c. 

Jan.  4.  Edward  Spinks  worked  2  days  repairing  shop 
and  charged  $7  on  ^.  Bought  of  F.  E.  Whitehurst,  on  ^-^ 
1  sack  flour  $1.50;  10  lbs.  sugar,  $1;  2  gals,  syrup,  90c.; 
100  lbs.  potatoes,  $1.25.  Mended  plow  for  J.  A.  Cilker  and 
charged  $1.75  on  ^. 

Jan.  5.  Paid  cai?h  for  vegetables,  80c.  Shod  two  horses  for 
H.  A.  Baggett  and  charged  $3  on  ^.  Paid  cash  for  coal, 
$8.50.  Bo't  of  Malsie  Livingston,  on ^,1  buggy, $35.  Mended 
wagon   for  F.  E.  Whitehurst,  and  charged  $2.75  on  ^, 

Jan.  6.  Received  cash  for  work  this  week,  $11.50.  Mend- 
ed harrow  for  Edward  Spinks  and  charged  $1.50  on  ^j. 
Shod  1  horse  for  E.  D.  Martin  and  charged  $2  on  ^. 

Jan.  7.  Paid  Malsie  Livingston,  on  ^,  $10.  Made  1 
setofhingeg  for  H.  A.  Baggett  and  charged  $1.00  on  ^. 
Shod  1  horse  for  J.  A.  Cilker  and  charged  $1.75  on  ^. 

Jan.  9.  Shod  2  horses  for  L.  F.  Puter,  $3.50  and  made  6 
staples   75c.,  charged  on  ^.     Paid  cash   for  beef,  $1.25. 

Jan.  10.  Bo't  of  Edward  Spinks,  on  ^,  150  lbs.  old  iron, 
@  2c.  Paid  cash  for  insurance,  $4.25.  Mended  harrow 
and  plow  for  E.  M.  Griswold,  $4.75;  charged  on  ^.  Bo't  of 
F.  E.  Whithurst,on^;  50  lbs.  salt,  $1.25;  100  lbs.  flour, 
$2.25;  6  gals,  coal  oil,  $1.25. 

Jan.  11.  Charged  J.  R.  Mangrum   for  work,   as  follows: 

66 


EXAMPLES   FOR   STATEMENTS. 

Shoeing  horses,  $3.50;  repairing  reaper,  $3.25;  16  bolts, 
$1.20;  1  chain  hook,  75c.     Paid   cash   for  sundries,  $1.10. 

Jan.  12.  Sold  E.  C.  Heintz,  on  note  at  90  days,  1  buggy, 
$90.  Paid  cash  for  books  and  paper,  $3.25.  Repaired  cart 
for  E.  D.  Martin  and  charged  $3.50  on  ^. 

Jan.  13.  Bo't  of  G.  M.  Steele,  4  cords  of  wood  @  $6.50, 
gave  him  an  order  on  L.  F.  Puter,  for  $5. — Bal.  on  ^. 
Repaired  wagon  for  J.  R.    Mangrum   and  charged  $8  on  ^. 

Jan.  14.  Received  cash  for  work,  $16.25.  Paid  cash  for 
vegetables,  $1.20.  Shod  2  horses  for  J.  C.  Towns,  $3.50, 
charged  on  ^.  Received  cash  on  ^  of  J.  A.  Cilker,  $2.50. 
Repaired  wagon  for  E.  M.  Griswold  and  charged  $6  on  ^. 
Paid  cash  for  iron,  $11.50.  Received  from  J.  R.  Mangrum, 
cash,  on  ^,  $3.  Repaired  buggy  for  G.  M.  Steele,  $7 
charged  on  ^. 

Jan.  16.  Repaired  garden  tools  for  Amy  Davis,  $2.20 
charged  on  ^.     Paid  cash  for  old  iron,  $1.75. 

Jan.  17.  Sold  our  shop  and  tools  to  F.  M.  May,  for  $750, 
received  cash,  $350  and  note  at  60  days  for  balance.  Make 
out  a  Statement  showing  Gain  or  Loss,  and  Net  Capital  at 
closing. 

MODEL   SET  III. 

In  the  following  set,  we  have  presented  a  method  of  keeping 
accounts,  which  is  used  by  several  large  provision  merchants 
in  this  State.  The  Day  Book,  in  this  set,  is  a  combination  of 
Day  Book,  Order  Book,  and  Sales  Book;  some  small  invoices, 
also,  are  entered  in  it.  As  in  the  Day  Book  models  of  the 
preceding  sets,  To  and  By  have  been  omitted  in  the  entries, 
because  the  terms  I>r.  and  Or.,  wiitten  directly  after  the  party's 
name,  are  suflftciently  explicit. 

The  Ledger  of  this  set,  as  shown  on  pp.  72  and  73,  has  wider 
pages,  which  permit  us  to  carry  the  different  items  of  each  Day 
Book  entry  on  account,  in  full  to  the  Ledger,  where  the  total 
cost  of  each  item  is  placed,  in  smaller  figures,  above  each  of  the 
different  items. 

This  method  of  entering  the  items  in  fuU  on  the  face  of  the 
Ledger,  has  the  advantage  that  an  itemized  bill  may  be  made 
out  without  referring  to  the  Day  Book. 

67 


MODEL  SET  m. 

An  Invoice  Book,  a  Memorandum  Book,  and  a  Bill  Book  are 
also  kept  Paste  the  invoices  in  the  Invoice  Book,  and  post 
those  charged  to  acc^t,  directly  to  the  Ledger. 

San  Jose,  Jan.  1,  1884.  Henry  Norton  and  Carl  Allen  com- 
mence business  with  the  following  resources  and  liabilities; 
gains  and  losses  to  be  divided  equally: 

Carl  Allen  invests,  cashj  $800;  merchandisej  $800;  personal 
accounts,  as  follows:  Mamie  Murray,  $150;  Wm.  Bacon,  $250. 
G.  W.  Congdon  holds  Carl  Allen^s  note  for  $100,  dated  Dec. 
1,  »83,  at  90  ds. 

Henry  Norton  invests,  cash^  $1000;  merchandise^  $700;  note 
against  Blanche  Krahl  for  $300,  dated,  Nov.  1,  ^83,  at  60  ds. 
Henry  Norton  owes  Mattie  Trimble  $100,  on  acc^t. 

Jan.  2.  Sold  Wm.  Bacon,  on  <jfc,  50;^  rice,  @  8^;  5;^  ker- 
osene, @  45^;  4#  tea,  @  60^.  Bo't  of  W.  S.  Bailey,  for 
cash,  500  f/^  Lima  beans,  @  5^;  400  ;^  salt,  @  2^;  400  ;K  sugar, 
@  10^.  Paid  cash  for  stationery,  $2.25.  Sold  Mamie  Murray, 
50;ff  pickles,  @  8^;  80;^  sugar,  @  13^;  rec'd  10;^  eggs,  @ 
aO^—balance  on  acc't  Cash  sales,  $35.  3.  Sold  Mattie  Trimble, 
on  ojc,  lOfi  vinegar,  @  30^;  8#  coffee,  @  20^;  5  ;^  tea,  @ 
50f  Bo^t  of  W.  S.  Bailey,  on  <5fc,  100  bbls.  flour,  @  $5;  300;^ 
bacon,  @  15f ;  120  ff  coffee,  @  15^.  Paid  cash  for  insurance, 
$13.25.  Rec^d  cash,  on  ^  of  Wm.  Bacon,  $100.  Sold  Mattie 
Trimble,  on  <^,  2  boxes  soap,  @  $1.25;  1  sk.  flour,  $1.50;  1 
box  crackers,  $2.10.  Rec^d  from  Mamie  Murray,  an  order  on 
Cora  Lee  for  $50  cash.  Cash  sales,  $25.80.  4.  Sold  Wm.  Bacon, 
on  %  2  sks.  flour,  @  $1.50;  4;^  tea,  @  75^;  20  #  rice,  @  7f 
Discounted  our  note  held  by  G.  W.  Congdon,  paying  her  cash, 
$95.  Rec*d  from  Blanche  Erahl,  cash,  $100,  to  be  credited  on 
her  note.  Cash  sales,  $38.50.  5.  Sold  C.  N.  Mills,  for  cash, 
\01f  starch,  @  12 Jf;  6  chickens,  @  50^;  120  yjK  potatoes,  @ 
2^;  b  ^  syrup,  @  60^.  Rec'd  from  Wm.  Bacon,  his  note  at 
30  ds.,  to  balance  acc't.  Sold  Mamie  Murray  50  bbls.  flour,  @ 
$6;  rec'd  her  note  at  60  ds.,  for  $200 — balance  on  acc't.  Bo't 
of  Mattie  Trimble,  on  %  1,500  ;K  dried  prunes,  @  10^.  Cash 
sales,  $40.80.  6.  Debit  Carl  Allen  with  Mdse.  to  date,  $58.50. 
Debit  Henry  Norton  with  Mdse.  to  date,  $75.  Took  an  inven- 
tory and  find  Mdse.  on  hand,  $2100. 

68 


8sT  3.] 


DAY  BOOK. 

SAN  JOSE,  January  i,  I884. 

Carl  Allkn,  Cr. 

For  Investment  as  follows: 

Cash 

Mdse 

Mamie  Murray's  account 

Wm.  Bacon's  account 

Dr. 
Note,  per  B.  B 

/# 

Henry  Norton,  Or. 

For  Investment  as  follows: 

Cash 

Mdse 

Note,  per  B.  B 

Dr. 
Mattie  Trimble,  on  ojc 

Mamis  Murray,                                                    Dr, 
Balance,  favor  C.  Allen. 

// 

Wm.  Bacon,                                                          Dr. 
Balance,  favor  C.  Allen 

// 

Mattik  Trimble,                                                   Or. 
Balance,  due  from  H.  Norton 

2. 

Wm.  Bacon,  Dr. 

50;Jf  Rice,  @    8^ 

5  j^  Kerosene,  45^ 

4;J^Tea.  00^ 

00 

Mamie  Murray,  Dr. 

60}^  Pickles,  @    8^ 

80;^  Sugar,  13i^ 

Or. 

10  ^  Eggs, @  30^ 

69 


72 


800 
800 
150 
250 


1000 
700 
300 


4 

225 

240 


4 
10401 


2000' 


100 


2000 


100 


150 


250 


10(1 


865 


14  40 


8bt3.] 


DAY  BOOK. 

SAX  JOSS,  Jatituuy  S,  1884. 

Mattii  T&imbije,  Dr, 

10  ]^  Vinegar,  @  30^ 

8  f/i  Coffee,  20^ 

5;^Te«,  60^ 

Wm.  Baoon,                                                                Cr, 
Cash 

Maitie  Trimble,  Dr, 

2  boxes  Soap,  %  $1.25 

1  sk.  Flour,  1.60 

1  box  Crackers,  2.10 

Mamie  Muriut,                                                    O. 
Order  on  Cora  Lee 

Wm.  Bacon,  Dr. 

2  sks.  Floor,  %  $1.60 

4;^Tea,  Ibf 

20;ffRice,  *Jf 

«. 

C.  N.  Miu^  Dr. 

10  f/i  Starch,  @  12^^ 

6  Chickens,  60^ 

120  ff  PoUtoes,  2^ 

5/rSyrup,  60^ 

Wm.  Baoon,                                                             Cr. 
Note,  to  balance  accoont 

Mamie  Mdrrat,                                                       Dr. 
50  bbls.  Floor,  @  $6 

Cr. 

Note  at  60  ds 

Cakl  Allen,                                                           i>r. 
Mdse.  to  date 

/^ 
Hkkbt  Nobtok,                                                        Dr. 
Mdse.  to  date 

70 


73 

73 
73 

72 
78 


25C 


10 


IOC 


25C 
150 
210 


10 


5C 


40 


740 


125) 
3 

240| 
3 


S65 

166  05 

300 
200 

5860 

76 


S^r  3.] 


INVOICE    BOOK.     (Bills  Jested  in.) 


Allkn  &  Norton, 

San  Francisco,  Jan.  2,  1884. 
Bought  of  W.  S.  Bailst. 

73 

563 
150 

I 

500  f/i  Lima  Beans, 
400  :/f  Salt, 
400  y  Sugar, 

Allen  &  Norton, 

@    6^ $25. 

2f 8. 

10^ 40. 

$73. 
Rec'd  Payment, — Cash. 

W.  S.  Bailky. 

73 

San  Francisco,  January  3,   1884. 
BouglUofVs.  S.  Bailey. 

100  bbls.  Flour. 
.300  y  Bacon, 
120  ff  Ck)flFee, 

Allkn  &  Norton, 

@$5 $500. 

15^ 45. 

15^ 18. 

$563. 
Ch'd  to  acc't. 

73 

San  Josk,  Jan.  5,   1884. 
Bought  of  Mattie  Trimble. 

1,600  ff  Dried  Prunes, 

@  10^ $150. 

Ch'd  to  acc't. 

Set  3.] 


CASH  BOOK. 


Dr. 


1884 
Jan. 


Amt.  on  hand 

Paid  W.  S.  Bailey,  Mdse 

Paid  for  Stationery 

Rec'd  for  Sales 

Paid  for  Insurance 

Rec'd  of  Wm.  Bacon,  on  o^fc 

Rec'd  of  Cora  Lee,  per  order  M.  Murray. 

Rec'd  for  Sales 

Paid  G.  N.  Congdon,  on  note 

Rec'd  of  Blanche  Krahl,  on  note 

Rec'd  for  Sales 

Rec'd  of  C.  N.  Mills,  Mdse 

Rec'd  for  Sales 

Balance 


1800 


35 

100 
50 
25 

100 
38 


40 


2199 


80 


965 


71 


O       I  o 


^ 


S 


8| 


■=-w 


¥ 


^ 


S. 


O       I  o 

■^ — ^ 


•i 


.1 


g 
•n 

H 

s  s 

3S 


■g" 


JJJ. 

Si 


2  o  g 


J 


«PQ 


2I5I 


(N  W  ^  ^o 


F^ 


11^- 


72 


I 


a 


o 

oi 

^ 

fH 

i 

s 

^ 

II 


<rt 

11 

= 

T 

"^"^ 

g 

1 

06 

t^ 

i 

s 

JL 

?  1: 

5^     .5 


8  ^^  a^ 

73       O        ^; 


-=; — 5r 


I 

I 
3 


"35 ^ 

_S2 £2. 


:-  -I 

—        (N 

^ «    »■ 


i   a  =  § 

f: — <6  S    "ST  — 

fc t2 


II 

i 

M 

^ 

il 

1 

eo 

II - 

li 

i 

1 

§ 

r~ 

«o 

1 

il 

73 


S«T  3.] 


BALANCE  SHEET. 


RxsouBcn. 

CMh 

laTentory 

Notes 

Mamie  Murray 

C.  Alien  (Private  Acc't) . . , 
U.  Norton  (Private  Aoc*t) 


2016251 

2100| 

66606 

21140 

5850 

75 


502720 


Liabilities. 

Mattic  Trimble 

W.  S.Bailey 

C.  Allen's  Net  Investment. . 

H.  Norton's  Net  Investment 

Xet  Oain 


23680 

563 
1900 
1900 

4£740 


5027  20 


SPECIAL  REMARKS  ON  THE  LEDGER. 

Index  the  Ledger  accounts  in  actual  business.  This  is  done 
by  arranging  in  alphabetical  order  the  account-titles  with  the 
Ledger-page  of  each.  This  index  is  usually  kept  in  the  begin- 
ning of  the  Ledger,  but  it  is  often  convenient  in  posting,  to 
have  it  written  on  card-board  and  placed  before  the  book- 
keeper. In  an  extensive  business  the  index  may  be  kept  in 
book  form,  with  several  pages  reserved  for  each  letter  of  the 
alphabet  The  leaves  are  cut  so  as  to  make  an  offset  on  which 
the  letters  of  the  alphabet  are  pasted.  Then  by  placing  the 
thumb  on  a  letter,  the  book  can  be  thrown  open  to  find  any 
name  beginning  with  that  letter. 

Errors  in  posting  may  be  corrected  by  drawing  a  line  in 
red  inky  or  with  a  pencilj  through  the  error  and  then  posting 
the  entr}'  to  the  proper  place.  Never  erase,  as  the  paper  is 
injured  by  the  operation,  and  in  case  the  books  are  brought 
into  Court,  it  may  be  difficult  to  explain  the  erasure. 

A  red  ink  entry  in  the  Ledger,  denotes  that  the  amount 
thus  written  is  to  be  transferred,  either  to  some  other  account, 
or  to  another  position  under  the  same  account.  "It  also  shows 
that  the  entry  is  first  made  in  the  Ledger,  not  having  passed 
through  the  usual  preliminary  books  of  entry.  Red  ink  entries 
are  always  transferred  to  the  opposite  side  from  where  they 
are  first  written,  for  the  reason  that  they  express  the  excess  of 
that  side.'' 


74 


PAET  II. 


DOUBLE   ENTEY, 


DOUBLE  ENTRY. 


Double  Entry  is  a  system  of  book-keeping  in  whicli  every 
transaction  is  tmce  entered;  first  on  the  debtor  side  of  one  or 
more  accounts,  and  then  on  the  creditor  side  of  one  or  more 
other  accounts,  to  which  it  also  belongs.  The  principle  which 
underlies  double  entry  book-keeping  may  be  pertinently  stated 
thus, — Every  debit  has  its  credit — every  amount  that  is  charged 
to  one  account  must  be  placed  to  the  credit  of  another. 

For  example:  a  man  purchases  a  bill  of  merchandise  from  a 
merchant;  the  merchant  enters  the  amount  of  the  merchandise 
on  his  books  to  the  debit  of  the  purchaser  and  to  the  credit  of 
Mdse.  account,  one  entry  thus  balancing  the  other. 

Book-keeping  by  single  entry  embraces  only  the  accounts  of 
persons;  but  in  double  entry  persons  and  things  are  alike  debited 
and  credited,  and  accounts  are  kept  not  only  with  individuals, 
but  also  with  the  different  species  of  property  in  your  posses- 
sion, and  with  the  different  branches  of  your  gains  and  losses. 
Double  Entry  enables  you, — by  thus  keeping  an  account  with 
property — to  know  the  condition  of  any  department  of  your 
business  at  a  glance,  and  gains  or  losses  may  be  determined 
by  examining  only  two  or  three  accounts. 

It  is  a  beautiful  system — a  science  in  fact,  based  upon  true 
mathematical  principles,  aU  the  elements  composing  it  being  so 
interwoven  that  a  derangement  of  one  can  be  traced  by  the 
efect  upon  the  others; — a  perfect,  mathematical,  and  evenly- 
balanced  system  of  checks  and  counter-checks,  every  detail  be- 
ing adjusted  with  that  nicety  and  precision  which  produces 
absolute  correctness  in  results. 

There  is  a  genuine  beauty  in  a  mathematical  problem,  for 
when  it  is  worked  out  the  solution  is  susceptible  of  proof 
within  itself.  And  so  in  double  entry  book-keeping,  the  cor- 
rectness of  the  work  can  be  clearly  demonstrated, — the  existence 
of  the  slightest  error  being  readily  detected  and  the  error  easily 
traced. 

MoTK.— In  Part  II.,  the  period  alter  common  abbroriationa  and  contractiona,  in  the  follj 
worked-oQt  Model  Sets,  is  omitted.  Thia  omiasion  of  the  period  ia  in  accordance  with  the  prae* 
tioe  of  boaineaa  men. 

77 


DOUBLE  ENTRY  BOOKS. 

Accounts  in  double  entry  are  usiially  kept  in  a  '^ set  of  books* 
known  as  Day  Book,  Journal,  Ledger,  and  Cash  Book.  In  an 
extensive  business,  several  additional  books  are  needed,  such  as 
Invoice  Book,  Sales  Book,  Bill  Book,  Order  Book,  and  others, 
according  to  the  nature  of  the  transactions. 

The  Bay  Book  contains  a  plain  history  of  your  business 
transactiouH,  ¥rritten  in  the  order  of  their  occurrence.  It  is 
customary  to  open  the  Day  Book  by  giving  a  statement  of 
your  Assets  and  Liabilities  at  the  commencement  of  business, 
making  the  entry  in  history  fonn-,  and  complete,  in  as  few  words 
as  possible. 

The  Jonmal  is  used  for  arranging  under  Ledger  titles  the 
entries  that  have  been  previously  made  in  the  Day  Book,  and 
for  affixing  to  each  Ledger  title  the  correct  amount  of  debit 
or  credit ;  this  is  called  joumalmng. 

Business  men  have  alMmdoned  the  use  of  the  Day  Book  and 
Jonmal  as  sepjirate  books.  The  two  are  usually  combined  and 
may  be  called  a  Jmtrnal-Day-Book.  When  combined,  the  Jour- 
nal entty  is  made  first,  and  the  Day  Book  explanation  written 
as  briefly  as  possible  either  under  or  at  the  right  of  the  Jour- 
nal entry. 

It  is  true  that  in  practice,  the  use  of  the  Journal  is  becoming 
obsolete,  for  it  only  entails  additional  labor  without  compen- 
sating benefits.  But  when  we  teach  our  juniors,  we  must  first 
let  them  grasp  the  system  of  the  Italians, — using  Day  Book 
and  Journal  as  separate  books — and  make  them  understand  its 
theory,  before  they  can  use  our  short  cuts  and  labor-saving 
contrivances.  It  is  customary,  in  journalizing,  to  write  the 
journal  entry  as  follows: 

Cash  J>r. 

To  Mdse. 

As  the  debit  account  is  always  above  and  to  the  left  of 
the  credit,  the  mere  position  of  the  names  indicates  which  is 
"Dr."  and  which  is  "Cr."  of  the  accounts j  therefore,  "Dr."  and 
''To''  may  be  omitted,  and  the  entry  made  in  the  following 

manner: 

Cash 
Mdse, 
78 


DOUBLE  ENTRY  BOOKS. 

The  Journal  should  have  two  extra  columns, — one  for  Mdse. 
Dr.,  and  the  other  for  Mdse.  Cr.j  by  the  use  of  these  extra 
columns,  it  is  unnecessary  to  post  the  merchandise  oftener  than 
once  a  month, — crediting  Mdse.  account  in  the  Ledger  at  the 
end  of  the  month  for  total  sales  on  account,  as  shown  by  the 
Mdse.  Cr.  column,  and  debiting  it  for  purchases  on  account  as 
shown  by  Mdse.  Dr.  column. 

The  Ledger  is  the  most  important  book  of  the  series.  Its 
principal  use  is  to  collect  under  one  head  all  sums  belonging 
to  the  same  account.  The  form  and  mode  of  entry  in  a  Double 
Entry  Ledger  is  similar  to  Single  Entry.  The  principal  differ- 
ence in  the  use  of  the  Ledger  in  the  two  systems  is  this:  The 
Single  Entry  Ledger  contains  accounts  with  individuals  only, 
while  the  Double  Entry  Ledger  contains  accounts  not  only 
with  persons  J  but  with  every  species  of  property  in  which  we 
deal.  On  the  debit  side  we  find  Resources  and  Losses;  on  the 
credit  side.  Liabilities  and  Gains. 

The  Cash  Book,  as  in  single  entr^-,  contains  a  record  of 
cash  transactions;  but  it  may  profitably  be  used  as  a  book  of 
original  entry,  and  the  posting  done  directly  therefrom  to  the 
Ledger.  In  making  entries  in  this  book  sufficient  explanation 
should  accompany  the  entries  to  make  them  plain.  It  is  un- 
necessary to  keep  a  cash  account  in  the  Ledger;  but,  instead, 
enter  on  the  Trial  Balance,  when  it  is  taken,  the  balance  or 
totals  of  the  Cash  Book. 

The  Sales  Book  contains  a  record  of  Mdse.  sales.  It  is  not 
often  used  in  small  establishments,  as  the  sales  are  generally 
recorded  in  the  Joumal-Day-Book.  When  a  Sales  Book  is 
kept,  you  may  post  directly  from  it  to  the  Ledger, — ^posting 
the  debits  to  the  personal  accounts  therein  charged,  and  cajry- 
ing  the  total  sales  forward  till  the  end  of  the  month,  when 
Mdse.  account  is  credited  in  one  entry  for  the  total  sales  of 
the  month. 

The  Invoice  Book  contains  a  record  of  Mdse.  bought.  The 
following  plan  of  keeping  an  Invoice  Book  is  simple  and 
I'c.onomical:  Get  a  scrap-book  of  proper  width  of  page,  and 
rule  a  single  dollar-and-cent  column  at  the  right  side  of  each 
page.    Index  the  book  and  paste  the  biUs  in  alphabetical  order, 

79 


DOUBLE  ENTEY  BOOKS. 

according  to  firm  names.  Carry  the  amount  of  each  bill  to 
the  money  column  at  the  right  Post  directly  from  this  book  to 
the  Ledger,— <srediting  the  proper  account  in  the  Ledger  with 
the  amt.  of  the  biU  in  the  Invoice  Book,  and  carrying  foi'w^ard 
tJie  totals  of  the  money  colimin  till  the  end  of  the  month,  when 
Hdse.  account  may  be  debited  in  one  entry  for  the  total  pur- 
chases of  the  month. 

The  Bill  Book  contains  a  record  of  Notes  and  Time  Drafts 
received  and  given.  The  form  on  page  23,  in  single  entry, 
will  answer  for  double  entry.  By  changing  the  ruling  of  this 
book, — adding  a  column  or  two  at  the  right — all  accounts  ^vith 
notes  and  time  drafts  may  be  kept  in  the  Bill  Book.  Bills 
Receivable  and  Bills  Payable  accounts  may  then  be  omitted 
in  the  Ledger,  but  in  ma^ng  a  Trial  Balance  the  same  course 
most  be  pursued  as  with  the  cash  account 


PRINCIPLES  AND  RULES. 

In  Double  Entry  book-keeping,  there  are  three  kinds  of  ac- 
eounts  aside  from  an  account  with  the  proprietor:  accounts 
with  persons,  accounts  with  property,  and  accounts  represent- 
ing allowances  made  by  us,  or  to  us,  for  interest,  discount, 
eoLchange,  premium,  storage,  commission,  expenses,  etc.,  by 
which  we  sustain  losses  or  realize  gains. 

Accounts  may  be  divided  into  two  classes:  one  of  which  is 
used  to  designate  the  Resources  and  Liabilities,  and  the  other  the 
Losses  and  Gains.  The  first  may  be  called  Real  or  Balance  ac- 
counts, and  the  second,  Representative  or  Loss  and  Gain  accounts. 

When  the  debit  side  of  an  account  in  the  Ledger  is  the  larger, 
the  difference  between  the  two  sides  is  always  either  a  Resource 
or  a  Loss.  If  this  difference  be  anything  of  value  belonging  to 
us,  or  any  note  or  personal  account  owing  to  usj  it  is  a  Re- 
source; if  not,  it  is  a  Loss. 

When  the  credit  side  of  an  account  in  the  Ledger  is  the 
larger,  the  difference  between  the  two  sides  is  always  either  a 

80 


PRINCIPLES  AND  RULES. 

Liability  or  a  Grain.     If  this  difference  be  any  note  or  personal 
account  we  owe,  it  is  a  Liability;   if  not,  it  is  a  Gain. 

OPENING  A  SET  OF   BOOKS. 

As  in  Single  Entry,  the  proprietor  must  be  credited,  in  com- 
mencing business,  with  his  Resources,  and  debited  with  his 
Liabilities.  In  a  partnership  business  each  member  of  the  firm 
is  credited  and  debited  in  a  similar  manner. 

In  the  Italian  system,  you  make  a  plain  statement  in  the 
Day  Book,  of  the  condition  of  the  business  at  commencing,  giv- 
ing a  list  of  the  Resources  and  Liabilities.     (See  Model  Set  1.) 

If  you  use  the  Joumal-Day-Book,  make  the  Journal  entry 
first:  List  of  Resources  Dr.  To  Proprietor,  and  Proprietor  Dr. 
To  List  of  Liabilities  J  and  then  make  the  proper  Day  Book 
explanation.  (See  Model  Set  2.)  If  there  are  partners,  make  a 
similar  entry  for  each  one.  After  making  the  proper  entries  in  the 
Day  Book,  cash  on  hand  should  be  entered  in  the  Cash  Book, 
notes  in  the  BiU  Book,  and  merchandise  in  the  Invoice  Book. 

CLOSING  A  SET   OF  BOOKS. 

It  is  customary  in  business  to  close  the  books  once  a  year, 
at  least.  It  is  usually  convenient  to  close  all  the  accounts  at 
this  time,  but  the  results  of  the  year's  work  may  be  known 
by  closing  only  the  Loss  and  Gain  accounts. 

First  Step.  After  all  the  items  have  been  posted,  take  a 
Trial  Balance  of  the  Ledger  accounts,  to  test  the  accuracy  of 
the  posting.  Every  debit  must  have  its  credit.  Hence,  if  no 
mistake  has  been  made,  the  sum  of  the  debits  in  the  Ledger 
will  equal  the  sum  of  the  credits,  and  the  total  footing  of 
either  side  will  equal  the  footing  of  the  Journal.  A  Trial  Bal- 
ance is  the  test  of  this.  In  actual  business  it  should  be  "taken 
off"  at  the  close  of  each  month. 

A  Trial  Balance  is  made  by  writing  the  name  of  each  ac- 
coimt  with  corresponding  aggregate  debit  and  credit  amounts. 
Find  the  sum  of  the  debits  and  also  of  the  credits.  If  the 
footings  agree  the  Ledger  is  probably  correct.  If  they  do  not 
agree,  the  error  must  he  found.  The  first  step  in  the  search 
for  the  error,  is  to  examine  the  footings  of  the  Ledger  and  of 

81 


PRINCIPLES  AND  RULES. 

the  Trial  Balance,  to  see  if  an  error  lias  been  made  in  adding. 
An  error  is  frequently  made  by  posting  an  amount  to  the 
yroHg  side  of  an  account.  If  this  discrepancy  is  an  et^en  n umbers 
take  lialf  of  i*,  and  examine  the  books  from  which  you  posted 
to  see  if  such  an  amount  can  be  found.  Correct  the  error  be- 
fore proceeding  further.  A  shorter  Trial  Balance  may  be  made 
by  omitting  all  accounts  that  balance. 

Second  Step.  Open  an  account  in  the  Ledger  with  "Loss 
and  Oain,"  and  another  witli  ** Balance;"  the  former  to  contain 
the  balances  of  the  Loss  and  Gain  accounts^  and  the  latter 
the  balances  of  the  accounts  showing  Resources  and  Liabilities. 

Third  Step.  Make  out  an  inventory  of  all  property  unsold.. 
In  business,  tliis  process  is  called  ''taking  an  account  of  stock," 
and  consists  in  actually  enumerating  the  articles,  estimating 
each  at  its  cash  value. 

Credit  each  account  for  which  such  property  was  originally 
debited,  with  the  value  of  that  unsold,  making  the  entry  in 
red  inky  using  the  term  ''Balance."  Debit  Balance  account  also 
>vitli  this  inventor\%  making  the  entrj'  in  black  ink,  using  the 
term  Merchandise,  Real  Estate,  Expense,  etc.,  as  the  case  may  be. 

Fourth  Step.  Close  the  accounts  in  the  order  in  which  they 
occur  in  the  Ledger,  omitting  the  proprietor's  or  partners'  ac- 
count until  all  the  other  accounts  have  been  closed. 

Close  a  "Representative"  account  by  entering  on  the  smaller 
side,  in  red  inky  the  difference  between  the  two  sides,  using  as 
the  closing  term, — Loss  and  Oain.  Then  rule  up  the  account  and 
bring  down  the  footings,  carrying  the  Balance  entry  of  the  Inven- 
tory, if  any,  below  the  rulings  on  the  debit  side  of  the  account, — 
*'  Balance,"  in  black  ink.  Transfer  the  Loss  and  Qbih  amount  to 
the  opposite  side  of  Loss  and  Gain  account,  writing,  in  black  ink, 
the  name  of  the  account  from  which  the  transfer  was  made. 

Close  an  account  showing  Resources  and  Liabilities,  by  en- 
tering on  the  smaller  side,  in  red  ink,  the  difference  between 
the  two  sides,  using  the  term  "Balance."  Rule  and  foot  the 
account-,  and  carry  the  balance  below  the  rulings,  in  black  ink, 
placing  it  on  the  opposite  side  from  its  position  above.  Trans- 
fer the  red  ink  entry, — "Balance,"  to  the  proper  side  of  Balance 
account. 

tt 


PRINCIPLES  AND  RULES. 

The  Loss  and  Gain  account  will  now  show  on  the  debit 
side  all  the  losses,  and  on  the  credit  side  aU  the  gains, — the 
difference  between  the  two  sides  being  the  net  losSy  or  the  nei 
gain. 

The  Balance  account  wUl  now  show  on  the  debit  side  aU 
the  Resources,  and  on  the  credit  side  aU  the  Liabilities, — the 
difference  between  the  two  sides  being  the  net  capital  or  the 
net  insolvency  of  the  proprietor. 

Fifth  Step.  Close  Loss  and  Gain  account  into  the  Proprie- 
tor's account,  or  if  it  be  a  partnership  business,  into  the 
partners'  accounts,  dividing  the  profits  or  losses  according  to 
agreement.  The  difference  between  the  two  sides  will  be 
entered  on  the  smaller  side,  in  red  inky — the  closing  term  being 
the  Proprietor's  name  or  "Stock." 

The  difference  between  the  two  sides  of  the  Proprietor's 
account  will  now  show  the  same  result  as  Balance  account, — 
net  capital  at  closing. 

Sixth  Step.  Close  Balance  account  into  the  Proprietor's,  or 
the  Proprietor's  account  into  Balance,  as  you  please;  in  either 
case,  the  account  which  is  closed  last  should  exactly  balance. 
^See  diagram,  page  89;   or  model,  page  96.) 


RULES  FOR  JOURNALIZING. 

"There  is  no  infallible  rule  for  journalizing — no  single  state- 
ment that  wiU  apply  logically  and  with  equal  force  to  the  record 
of  all  transactions;"  but  the  student  wiU  find  the  following  form- 
ulas valuable: 


Debit    what    we    receive ) 
what  costs  us  value. 

LIST  OF  DEBITS. 

Cash  received. 
Others'  notes  received. 
Our  notes  redeemed. 
What  others  owe  us. 
Capital  withdrawn. 
Outlay  or  loss. 


or 


Credit    what     we    give, 
what  produces  us  value. 

LIST  OF  CREDITS 

Cash  paid. 

Others'  notes  disposed  of. 
Our  notes  issued. 
What  we  owe  others. 
Capital  invested. 
Returns  or  gains. 


or 


83 


PRINCIPLES  AND  RULES. 


TH£   PROPRIETOR. 


Debit  the  Proprietor  for  his 
liabilities  assumed  by  the  busi- 
neeSy  for  all  cash,  Mdse.,  etc.^ 
withdrawn  for  private  use.  In 
a  firm,  debit  each  partner  in  a 
similar  manner. 


Credit  the  Proprietor  for  what 
he  invests  at  commencement  of 
business,  and  for  all  subsequent 
investments.  In  a  firm,  credit 
each  partner  in  a  similar  man- 
ner. 


The  title   "Stock"  is   sometimes   used  in  place  of  the  Pro- 
prietor's name. 


Debit  for  amt  on  hand  at 
commencing,  for  all  we  buy, 
and  for  any  returned  to  us. 


MEBCHANDISK. 

Credit  for  all  we  sell,  and 
for  any  that  we  return.  At 
closing,  credit  for  amt.  on  hand. 


Under  the  title  "Mdae.,"  we  include  all  goods  in  which  the 
proprietor  is  dealing.  If  we  wish  to  exhibit  results  in  detail, 
we  may  open  accounts  with  flour,  clothing,  etc.,  instead  of  unit- 
ing these  various  articles'  under  the  general  head. 


Debit  with   any   outlay   for 
carrying  on  the  business. 


Credit  for  anything  disposed 
of,  which  was  previously  del)- 
ited  to  Expense.  At  closing, 
credit  for  amt.  on  hand. 


Under  the  title,  "Expense,"  we  generally  include  such  items 
as  rent,  salaries,  fuel,  light,  office  books,  office  furniture,  insur- 
ance, repairs,  etc. 


BIIX8  RECEIVABLE. 


Debit  for  all  written  prom- 
ises to  pay,  of  other  parties, 
when  received. 


Credit  for  the  written  prom- 
ises to  pay,  of  other  parties, 
when  paid  or  otherwise  dis- 
posed of. 

Under  the  title,  "Bills  Receivable,"  we  include.  Time  Notes, 
and  Drafts.  Drafts  are  sometimes  called  Acceptances.  Debit 
and  credit  Bills  Receivable,  for  the  face  value  of  notes  and  drafts. 
The  difference  between  the  two  sides  will  show  BiUs  Receiv- 
able on  hand. 

84 


PRINCIPLES'  AND  RULES, 


Debit  whenever  we  pay  notes 
and  drafts  we  owe. 


BUXS  PAYABLE. 

Credit  for  our  notes  when 
issued,  and  for  drafts  we  ac- 
cept. 

Under  the  title,  "Bills  Payable,"  we  include  notes  and  ac- 
cepted drafts,  due  at  some  future  time.  The  difference  between 
the  two  sides  will  show  the  Bills  Payable  outstanding. 

CASH. 

Debit  when  received.  |  Credit  when  paid  out. 

Under  the  title,  "Cash,"  we  include  currency,  checks,  postal 
orders,  sight  drafts,  and,  generally,  all  kinds  of  paper  payable 
on  demand.  A  cash  account  should  not  be  kept  in  the  Ledger, 
as  the  Cash  Book  gives  aU  the  information  needed.  It  is  un- 
necessary' labor  to  keep  a  bank  account  in  the  Ledger.  You 
may  consider  the  amount  on  deposit  as  so  much  cash  on  hand, 
and  keep  an  account  with  the  bank  in  the  check  book. 

INTEREST  AND  DISCOUNT. 

Debit  when  allowed  t-o  others.    |    Credit  when  allowed  to  us. 

Interest  is  the  compensation  allowed  for  the  use  of  money  j 
and  discount  is  the  allowance  made  for  the  payment  of  a  debt 
before  it  is  due.  "When  we  allow  or  pay  for  the  use  of  money, 
we  debit  Interest  for  the  use  of  the  money  which  we  receivef 
and  credit  Cash  for  the  cash  we  gwe  for  the  use  of  that  money. 
When  we  are  paid  for  the  use  of  money  which  we  have  loaned, 
we  debit  Cash  for  the  cash  we  receive^  and  credit  Interest  for 
the  use  of  the  money  we  give. 

"When  we  need  money,  we  sometimes  take  the  notes  which 
we  hold  against  others  to  a  bank  and  get  them  ^  discounted.^ 
If  the  notes  are  not  drawing  interest,  the  banker  deducts  a 
certain  amount  from  the  face  of  the  note,  and  gives  us  the 
balance  in  cash.  The  amount  which  he  deducts  is  the  'dis- 
count,' or  the  sum  we  pay  him  for  the  use  of  the  money  for 
the  unexpired  time  of  the  note." 

The  above  rules  will  apply  also  to  such  accounts  as  Storage, 
Commission,  Exchange,  etc 


PRINCIPLES  AND  RULES. 

RKAI.  KSTATK. 

Debit  for  cost  |  Credit  for  returns. 

Under  the  title,  "  Real  Estate,"  we  include,  farms,  lots,  houses, 
etc.  In  practice  we  usually  keep  a  separate  account  with  each 
kind  of  real  estate,  and  the  general  term — Real  Estate — is  not 
needed. 

PERSONAI.  ACCOnXTS. 


Debit,  at  commencement^  for 
what  they  owe  us;  and  debit 
for  everj'thing  we  let  them  have 
on  account. 


Credit,  at  commencement,  for 
what  we  owe  them;  and  credit 
them  for  all  we  receive  on  ac- 
count. 


Under  this  heading  we  include  persons,  firms,  and  corpora- 
tions. If  the  debit  side  of  a  personal  ticcount  is  the  larger,  the 
difference  between  the  two  sides  is  a  Resource.  If  the  credit 
side  is  the  larger,  the  difference  is  a  Liability. 


I^OflT   ACCOUlfTS   AND    NOTES. 


Credit  for  amounts  that  are 
afterwards  paid  on  accounts 
and  notes,  which  we  had  deb- 
ited to  this  account. 


Debit  for  amounts  we  lose 
on  accounts  and  notes  )>y  per- 
sons failing  in  business,  mak- 
ing assignments,  etc. 

Close  this  account  into  Loss  and  Gain.  This  account  is  not 
usually  opened  in  the  Ledger;  but  it  will  pay  to  keep  it  for 
the  infonnadon  it  furnishes  in  a  condensed  form.  If  not  kept, 
the  worthless  personal  accounts  should  be  separately  (closed  into 
Loss  and  Gain,  and  the  amounts  lost  on  notes  and  drafts  be 
charged  to  the  same  account.  In  closing  an  account  which  is 
e$Uirely  worthUss^  credit  it  in  red  ink, — ''Lost  Accounts  and 
Notes,"  for  the  balance  of  the  account,  and  carry  this  balance 
to  the  debit  side  of  Loss  and  Gain  account,  writing  the  name 
of  the  account  from  which  it  was  transferred. 

Posting  is  carrying  accounts  to  the  Ledger.  An  account  is 
opened  in  the  Ledger  with  everj'  debit  and  credit  item  found  in  the 
JoumaL  Every  debit  item  in  the  Journal  must  be  placed  on  the 
debit  side  of  its  account  in  the  Ledger,  and  every  credit  in  the 
Journal  on  the  credit  side  of  its  account  in  the  Ledger.  The 
date  of  the  item  in  the  Journal  is  carried  with  it  to  the  Ledger. 


PRINCIPLES  AND  RULES. 

In  posting  debit  items,  write  as  an  explanation  in  the  Ledger 
account,  the  name  of  the  credit  item;  and  in  posting  credit 
items,  write  as  an  explanation  in  the  Ledger  account,  the  name 
of  the  debit  item.  The  page  of  the  Ledger  is  entered  in  the 
Journal,  and  the  page  of  the  Journal,  in  the  Ledger. 

Sundries  is  a  technical  term  frequently  used  in  book-keeping. 
It  simply  means  various  accounts,  and  is  convenient  as  a 
Journal  expression,  to  avoid  the  necessity  of  enumerating  the 
items  which  comprise  the  totals  carried  to  the  Ledger  accounts. 
It  need  not  be  written  in  the  Journal,  but  may  be  understood 
when  posting  the  totals.     (See  Model,  page  93.) 

Loss  and  Gain  account  generally  receives  the  balance  of 
the  following  accounts,  for  they  are  usually  speculative  in 
character  and  show  losses  or  gains:  Merchandise,  Expense, 
Interest  and  Discount,  Real  Estate,  Commission,  etc. 

Balance  account  generally  receives  the  balances  of  the  fol- 
lowing accounts,  for  they  usually  show  resources  or  liabilities: 
Cash,   Bills   Payable,   Bills   Receivable,   Personal  accounts,   etc. 

Change  Single  Entry  to  Double  Entry  in  the  following  manner : 

First. — Take  an  inventory  of  Mdse.,  and  aU  other  property  on 
hand  not  at  present  represented  in  the  Ledger  j  open  an  ac- 
count in  the  Ledger  for  each  kind  of  property, — Merchandise, 
Bills    Payable,   Bills    Receivable,   Cash,   Expense,    Interest   and 

Discount,  Real  Estate,  etc and  debit  these  accounts  for  the 

total  value  of  each  as  represented  in  the  inventory.  Also, 
credit  the  parties  from  whom  we  received  notes,  with  the 
amount  of  such  notes,  if  they  were  not  credited  with  the  notes 
at  the  time  received;  and  debit  the  parties  to  whom  we  gave 
notes,  with  the  amount  of  such  notes,  if  they  were  not  debited 
at  the  time  the  notes  were  issued. 

Second. — Make  out  a  "statement"  in  the  usual  manner — placing 
all  the  Resources  on  one  side  and  the  Liabilities  on  the  other. 
The  difference  between  the  two  sides  of  the  Statement  will  be 
the  Present  Worth,  and  by  comparing  it  with  the  Net  Capital 
at  commencing,  the  lois  or  gain  will  be  found.  Enter  this 
amt.  as  "Loss  and  Grain"  in  the  Ledger,  on  the  proper  side  of 
the  Proprietor's  account — ^if  it  is  a  G^ain,  on  the  credit  side,  if 
a  Loss,  on  the  debit  side. 

87 


PRINCIPLES  AND  RULES. 

Third. — Take  a  Trial  Balance  of  the  Ledger,  for  after  the 
change  to  Double  Entry  has  been  made,  your  Ledger  must 
balance,  because  all  your  Resources  appear  upon  the  debit 
side,  and  all  your  Liabilities  and  the  Present  Worth  appear 
upon  the  credit  side. 

Partnership  Change.  In  taking  a  new  partner  into  the  busi 
ness,  it  is  usually  best  to  close  the  books  at  the  time  the 
change  is  made,  and  to  make  out  a  Balance  Sheet,  in  order 
that  the  present  condition  of  the  business  may  be  shown  in  a 
condensed  form.  Wlien  this  is  done,  the  Ledger  exhibits 
on  its  face  nothing  but  those  accounts  which  are  either  Re- 
sources or  Liabilities;  it  also  shows  the  "present  net  worth"  of 
the  proprietor,  or  of  each  of  the  old  partners.  The  new  partner 
may  now  be  credited  with  his  net  investment. 

A  Balance  Sheet  or  Statement  is  usually  made  out  once  a 
month,  in  order  that  the  proprietor  may  know  how  his  busi- 
ness is  progressing.  At  the  close  of  the  month,  after  the  Trial 
Balance  has  been  taken,  it  is  the  best  time  for  preparing  this 
Statement.  The  forms  in  use  are  various,  according  to  the 
necessities  of  the  occasion  and  the  ingenuity  of  the  accountant. 
The  process  of  showing  results  is  precisely  similar  in  its  order, 
and  the  results  the  same  as  in  "closing  the  Ledger,"  which 
latter  operation  has  already  been  fully  explained.  A  Form, 
showing  a  combined  Trial  Balance  and  Balance  Sheet,  will  be 
found  on  page  106. 

Correcting  Errors.  When  an  entry  is  posted  to  the  wrong 
side  of  an  account,  draw  a  red  line  through  the  amount  of 
such  error,  and  then  post  the  amount  as  it  should  have  been 
posted. 

Errors  in  the  Journal  can  be,  in-  many  cases,  corrected  by 
canceling  one  or  two  figures  with  a  pencil,  and  writing  the 
correct  ones  above. 

When  a  Journal  entry  has  not  been  posted  at  the  proper 
time,  do  not  make  the  date  column  of  your  Ledger  show  dates 
improperly,  as,  for  example,  that  March  comes  after  April,  but 
post  the  entry  under  the  date  of  •  the  last  entry,  giving  the 
proper  date,  in  parentheses,  'x)  right  of  explanation  column; 
thus:   (March  10). 

88 


> 


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w 

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PRINCIPLES  AND  RULES. 
EXAMPLES  OF  JOURNALIZING. 


DAY   BOOK    RECORD. 

1200 
2050 

2000 

530 

1200 

800 

75 

500 

220 
40 

100 

JOURNAL  ENTRY. 

1200 

700 
300 
150 
900 

900 
600 
400 
200 

530 

1200 

800 

75 

600 

220 

40 
100 

1.   Cash 

this  day,  with  Cash 

C.  P.  Evans 

1700 

9      f!     T*    T<!\r&na  r>ntnirtpnfv>(1    KiiainAfut 

2.   Cash 

with  Resources  as  follows : 

Cash,  per  C.B $700 

Notes,  per  B.  B 300 

Bills  Rec 

J.  F.  Utter 

Mdse 

J.  F.  Utter  owes  on  <^ 150 

Md8e.,perl.  B 900 

C.  P.  Evans 

2060 

3.   C.  P.  Evans  commenced  business 

3.   Mdse 

with  Resources  and  Liabilities  as 

Cash 

follows: 

Bttources. 

Mdse.,  perl.  B $900 

Cash,p«rC.B 500 

Notes,  per  B.B 400 

Frank  Graham  owes  on  «^ . .  200 

LiabUUU«. 
Jas.  Nnnnelly,  due  him  on  ^  180 
Bills  Payable,  per  B.  B 350 

Bills  Rec 

Frank  Graham 

C.  P.  Evans 

C.  P.  Evans 

Jas.  Nunnelly  .  . . 
Bills  Pay 

2000 

180 
360 

A      T^^*f  nf   T.n^iiis   Allpn     for  r^ojiVi 

4.   Mdse 

200bbl8.  Flour,  @  $6 

Cash 

1200 

5.   Sold  H.  Witherspoon,  for  cash, 
100bbl8.Beef,  @$8 

6.   Cash 

Mdse 

800 

6.   Bo't  of  R.  D.  Sinnott,  on  <^, 
500  J^  Dried  Prunes,  @  15< 

6.   Mdse 

R.  D.  Sinnott .... 

75 

7.   Sold  Ida  Jones,  on  note  at  90  ds. , 

7.   Bills  Rec 

50  bbls.  Flour,  @  $6 $300 

10  bbls.  Beef,  @  $20 200 

Mdse 

600 

8.   Bo't  of  Frank  Canch,  on  note  at 

8.   Mdse 

60  ds., 

200  jl^  lima  Beans,  @5^..$  10 

1,400  ^  Dried  Peaches,  @  15^  210 

Bills  Pay 

220 

9.    Paid  rent  for  store,  in  cash 

Cash 

40 

10.   Reed  of  G.  W.  Koch,  cash  on 

10.    Cash 

OL 

G.  W.  Koch 

100 

90 


PRINCIPLES  AND  EXILES. 


DAY  BOOK  RECORD. 

500 
125 

150 
300 

100 
200 

250 

100 
200 

300 
280 
312 
250 

11. 

JOURNAL.  ENTRY. 

150 
350 

125 

150 
300 
300 

2.')0 

100 
200 

290 
10 

280 

11.   Sold  Marine  Gage, 

25  bbls.  Beef,  @  $20 

Cash 

Marine  Gage 

Rec'd  in  payment,  cash. . .  .$150 
Balance  on  account 350 

Mdse 

500 

12.    Bo't  of  Kate  Bromley, 

500  fl  Raisins,  @  25^ 

12. 

Mdse 

Bills  Pay 

Kate  Bromley .... 

100 

Gave  my  note  for $100 

Balance  on  (% 25 

25 

13.    Paid  my  note  of  the  5th  inst., 
favor  of  Fanny  Stockton,  in  cash 

13. 

Bills  Pay 

Cash 

ino 

14.   Bo't  safe  for  office,  and  paid  cash 

14. 

Expense 

Cash 

300 

15.   Paid  Arthur  Braly,  to  apply  on 
account,  caflh 

15. 

Arthur  Braly 

Cash 

100 

My  note  at  30  ds 

Bills  Pay 

•TOO 

16.   Sold  my  office  safe  to  W.    B. 
Zimmerman,    and   received    his 
note  at  60  ds 

16. 

Bills  Rec 

Expanse 

250 

17.    Rec'd  of  Martha  Bradley,  to  bal- 
ance account. 

17. 

Cash 

Bills  Rec 

Cash 

Martha  Bradley . . 

:^oo 

Note  at  60  da 

18.    Paid  my  note  of  lOth  inst.,  favor 
of  Mary  Young,  with  interest, 
in  cash  ........    ....      .  ^ ,    , , 

18. 

Bills  Pay 

Interest 

Cash 

?oo 

Face  of  Note $290 

Interest  to  date 10 

19.    Prepaid   my  note  of  8th  inst., 
favor  Agues  Spatz 

19. 

Bills  Pay 

Discount 

6 

Discount  off,  20  ds $    6 

Paid  balance  in  cash 274 

Cash 

274 

20.    Mary  Harriman  prepaid  her  note 

20. 

Discount 

12 
300 

Cash 

Discount  off,  1  mo $  12 

Rec'd  balance  in  cash   300 

Bills  Rec 

312 

21.    Accepted  Dora  Perry's  draft  on 
me  for 

21. 

Dora  Perry 

2.501 

Bills  Pay 

1  250 

. 

91 


PRINCIPLES  AND  RULES. 


DAT  BOOK  RECORD. 


22. 


We  hold  a  note  against  John 
Doe,  and  we  learn  that  he  died 
on  the  5th  inst.,  insolvent. 
Face  of  Note 


23.  Richard  Roe  has  failed  in  busi- 
ness, and  we  have  lost  his  acc't. 
Amt 


24.    Sold  Carrie  Claypool, 

100  if  Sugar,  @  12^ 

Rec'd  10  ff  Eggs,  @  30< $3 

Cash  for  balance 0 


25. 


Exchanged  Notes  M-ith  John  A. 
Price  for  mutual  accommodation. 
Face  of  each  Note 


26.    Gave    Rol>ert  Adcock   an   onler 
on  A.  M.  Falkner,  for  Mdse 


27.  Rec'd  an  order,  signed  by  W. 
H.  Bailey,  requesting  lis  to  let 
Frank  Porter  have  Mdse  .  .' 


28.  Bo't  a  bill  of  Mdse.  of  H.  W. 
Prouse,  and  sent  him  a  sight 
draft  on  Braly  &  Co.  for  the  amt. 


29.  Rec'd  from  John  Bull,  a  Bill  of 
Exchange,  at  30  ds.  to  balance 
his  acc't.     Amt.  of  Bill 


30.    Paid  Clerk's  salary  by  check  on 
Bank  of  San  Jose 


31.  Accepted  W.  B.  Zimmerman's 
draft  on  us  at  10  days'  sight, 
favor  of  F..S.  Conn 


32.    Prepaid  our  acceptance  in  favor 

F.  S.  Conn 

Discount  oflf,  10  ds |  3 

Cash  for  balance 97 


33.    Debit  the  person  who  draws  the 
draft  on  you 


200 


100 


12 


200 


7m 


500 


80 


100 


100 


JOURNAL,  ENTRY. 


22.    Loss  and  Gain . 
Bills  Rec  . 


NoTf..— When  we  have  several 
bad  nute«  and  accounts,  open  an 
account  with  "Ijost  Notes  and 
Accouuta,"  and  charge  that  acc't 
w  ith  the  22d  and  23d,  instead  uf 
Ia^hh  and  Cain. 


23. 


1  .oss  and  ( iain  . . . 
Richard  Roe 


24.    Mdse.  ... 

Cash 

Mdse. 


25.    BilU  Rec  ... . 
Bills  Pay 


26.    Robt.  Adcock 

A.  M.  Falkner 


27.    W.  H.  Bailey 
Mdse  . . . . 


28.    Mdse 

Braly  &  Co. . 
8ight  Draft. 


29.    Bills  Rec 

John  Bull 


.30.    Expense 

Bank  San  Jose 


31.    W.  B.  Zimmerman 
Bills  Pay 


32.  Bills  Pay  . . . . 
Discount 
Cash  .... 


33.    Credit  the  person  on 
whom  you  dra\i'  a  draft. 


200 


200 


100 


200 


25 


30 


300 


500 


80 


100 


100 


100 

12 

200 

25 
30 

.300 

500 

80 
100 

3 

97 


92 


DAY  BOOK. 

Set  1.]  SITKA,  May  1,  J884. 

Herbert  Bushnell  commenced  business  by  investing  as  follows: 

Merchandise,  per  I.  B 

Cash 

Note,  per  B.  B 

2. 

Bo't  of  Oliver  Webb, 

40  pre.  Blankets,  @  $6 

100  J^  Sheeting,  @  15^ 

Paid  cash $80. 

Balance  on  ojfe 175. 

Sold  Loyd  Childs,  on  ajc, 

1  Otter  Cap 

5  Seal  Skins,  @  $5.50 

// 
SoKl  James  Low,  on  note,  at  60  days, 

6  pre.  Blankets,  @  $10 

1  Beaver  Robe 

// 
Cash  sales  to-day 

3. 

Paid  cash  for  insurance 

// 

Rec'd  cash  of  Loyd  Childs,  on  ^ 

/ 
Rec'd  Cash  of  Arthur  Knox,  part  payment  of  his  note  of  Ist  inst 

Sold  Loyd  Childs,  on  <%, 

4  Bear. Skins,  @  $18 

Sold  Oliver  Webb,  on  ^, 

1  case  Salmon 

// 
Cash  sales  to-day 

4. 

Paid  Oliver  Webb,  cash  on  ojc 

// 
Bo't  of  Whale  &  Co. ,  on  our  note  at  30  days, 

Invoice  of  Mdse 

Laventory.— Mdse.,  $1,190. 

93 


1000 
800 
200 


240 
15 


2000 


255 


350 
2750 


60 

40 


50 


31 

100 

45 

12 
10 

50 

72 

75 
60 

70 

200 
1298050 


Set  1.] 


JOUENAL. 

SITKA,  May  1,  1884. 


Db.        Ct. 


Mdse . . . . 

Cash 

fiilU  Rec 


Herbert  Bashnell. 

2. 


Mdse 


C««h 

Oliver  Webb. 


Loyd  Childs. 
Bills  Rec  ... 
Cash 


Mdse 


Mdse 


Mdae. 


3. 


Expense . 


Cash. 


Cash, 


Loyd  Childs. 


Cash 

Loyd  Childs. 
Oliver  Webb. 
Cash 


Bills  Rec. 


Mdse 


Mdse 


Mdse. 


Oliver  Webb. 
Mdae 


Cash 

Bills  Payable 


1000 
800 
200 


255 


31 

100 

45 

12501 

10 

50 

72 

75 

60 

70 
200 


2uO0 


80 
175 


31 


100 


45 


50 
72 
76 


70 


200 


1250 


10 


94 


Set  1.] 


LEDOER. 
HERBERT  BUSHNELL. 


1884 
May 


6  Balance, 


210550  M 


210550 


1884 
ay   1 


Sundries 

Loss  and  Gain 


94 


2000 
10550 


2105 


50 


MERGHAKDISE. 


1884 
May 


Herbert  Bushnell. 

Sundries. 

Bills  Pay 

5]  Lofts  and  Gain. . . . 


1000 
255 
200 

lis 


1673 


1884 
May 


Loyd  Childs. 

BUlsRec 

Cash 

Loyd  Childs. 
Oliver  Webb. 

Cash 

Balance. , 


94 

31 

94 

100 

94 

45 

94 

72 

94 

75 

94 

60 

1190 

1673 

CASH. 


1884 
May 


Herbert  Bushnell. 

Mdse 

Loyd  Childs 


3  Bills  Rec. 


Mdse 


800 
45 
10 
50 


965 


1884 
May 


Mdse 

i|  Expense 

Oliver  Webb. 
Balance . . 


1250 
70 

802 


965 


BILLS  RECEIVABLE, 


1884 
May 


Herbert  Bushnell 

Mdse 


1884 

94 

200 

May 

3 

94 

100 

(< 

5 

300 

Cash 

Balance. 


H 


50 

£50 


300 


OLIVER  WEBB, 


1884 
May 


Mdse 

Cash , 

Balance 


1884 

94 

75 
70 

May 

2 

SO 
175 

_ 

Mdse 


94 


175 


175 


95 


8rr  1.] 


LEDGER. 
LOYD  CHILDS. 


18841 
Mav 


Mdse 
Mdse 


31 


103 


May 


I8S4 


3  Cash 


Balance. 


94 


101 

9Si 


103 


BILLS  PAYABLE, 


1884    J 

May  _S\  Balance , 


£00 


11884 
[May 


4  Mdse 


•H 


200 


EXPENSE. 


1884 

May  SiCash |94{ 


yI884     I 
May]  ^ 


Lori/)  oTui  (7ain. 


ifk? 


XOiS-Sf  AND  OAIK, 


1884 
May 


5  Expense 

Herbert  Bushnell. 


118 


1884 
12150  May 
10550 


Mdse 


118 
T18 


BALANCE. 


18841 
May 


51  Mdse 

Cash 

Bills  Rec... 
Loyd  Childs. 


1190 
802501 
250 
93 


233550 


1884 
May 


5  Oliver  Webb . 


Bills  Pay 

Herbert  Bashnell. 


30 

200 

210550 

233550 


TRIAL  BALANCE. 


Face  of  the  Ledger. 


Dr.       Cr. 


Herbert  Bnslmell . 

Mdse 

Cash 

BillsRec.... 

Oliver  Webb 

Loyd  Childs 

Bills  Pay 

Expense 


1455 
965 
300 
145 
103 


298050 


1250 


12000 
383 
.16250 

50 
175 

10 
200 


298050 


96 


MODEL   SET  11. 

The  books  of  this  set  are  the  Journal-Day  Book,  the  Ledger, 
Cash  Book,  and  Bill  Book.  Methods  of  combining  Day  Book 
and  Journal  are  shown  on  p.  98,  and  on  pp.  99  and  100.  On  p. 
100,  a  third  column  is  added,  for  the  Sales  Book. 

San  Francisco,  Jan.  2,  1884.  Marine  Gage  and  C.  W.  Mills 
commenced  business  as  partners,  under  the  firm  name  of  G^age 
&  Mills. 

Marine  Gage  invests  Mdse.,  $1500;  cash,  $1000  j  his  liabilities, 
which  the  firm  agrees  to  assume,  consist  of  a  note,  favor  of  Clara 
Shaw,  dated  Dec.  1,  '83,  at  60  ds.,  amt.  $200. 

C.  W.  MiUs  invests  cash,  $2000  j  note  for  $300,  against  C.  F. 
Neil,  dated  Jan.  2,  '84,  at  30  ds. 

Jan.  2.  Bo't  of  H.  D.  HoUingsworth,  for  cash,  a  biU  of 
Mdse.,  $900.  Sold  Mabel  Field,  on  ^,  1  shawl,  $10;  IS  J^ 
Parsee  cloth,  @  90^;  1  pr.  gloves,  $1.75.  Sold  H.  R.  Bailey,  on 
note  at  60  ds.,  bill  of  Mdse.,  $175.  Cash  sales  to-day,  $70.  3. 
Paid  cash  for  insurance,  $15.25.  Sold  Eva  Hasty,  on  ^,  biU  of 
Mdse.,  $60.  Sold  Hiram  Pawley  a  bill  of  Mdse.,  $120;  rec'd 
cash,  $80; — ^balance  on  ^.  Paid  cash  for  stationery  and  stamps, 
$6.25.  Cash  sales  to-day,  $65.50.  4.  Sold  Eva  Hasty,  on  %  1 
pr.  gaiters,  $3.25;  18  ^f  Pacific  lawns,  @  50f  Sold  Henry 
Hardcase,  on  <^,  a  bill  of  Mdse.,  $75.  Rec'd  of  C.  F.  Neil,  in 
part  payment  of  her  note  of  1st  inst,  $200.  Cash  sales  to-day, 
$40.  5.  Sold  Peter  Tramp,  on  note  at  60  ds.,  bill  of  Mdse., 
$100.  Deposited  $2000  in  Commercial  Bank.  Paid  clerk's 
salary,  $70,  by  check  on  Commercial  Bank.  Cash  sales  to-day, 
$60.  6.  Bo't  of  Frank  Porter,  a  bill  of  Mdse.,  $150;  gave  him, 
in  part  payment,  C.  F.  Neil's  note, — amt.  still  due  on  it,  $100; — 
balance  on  ^.  Paid  rent  for  store,  $40,  by  check  on  Commer- 
cial Bank.  Deposited  in  the  bank,  $80.  Cash  sales  to-day,  $35. 
8.  Rec'd  cash  on  ^,  of  Mabel  Field,  $12.  Discounted  Gage's 
note,  favor  Clara  Shaw,  and  paid  for  same  by  check  on  Com- 
mercial Bank,  $192.  Sold  Hiram  Pawley,  on  ^,  a  bill  of  Mdse., 
$80.  Cash  sales  to-day,  $61.10.  9.  Henry  Hardcase  died,  in- 
solvent, on  the  6th  inst.,  and  Peter  Tramp  absconded  on  the 
7th.  Sold  Eva  Hasty,  on  <jh,  a  bill  of  Mdse.,  $30.  Cash  sales 
to-day,  $58.  10.  Sold  Mabel  Field,  on  ^,  a  bill  of  Mdse.,  $40 
Tr^lr  an  inventory,  and  found  Mdse.  on  hand,  $1480 

97 


JOURNAL-DAY  BOOK. 


S»i2.] 

SAN  FRANCISCO,  January  f,  188J^ 

Dit 

C«. 

101 
101 

Commenced  business  as  per  agreement  in  M.  B. 
Cash,                                                                       On  hand, 
Mdse.,                                                                   In  store, 
Marine  Gage,                                 Investment, 

1000 
1600 

2500 

r* 

101 
102 

Marine  Gage,                   Note,  favor  Clara  Shaw,  dated 
Bills  Payable,         [Dec.  1,  '83,  at  60  ds. 

200 

200 

102 
101 

Cash, 

Bills  Receivable, 

C.N.  Millie 

On  hand, 

Note,  as  per  B.  B. 

,                                  Investment, 

2000 
300 

2300 

101 

Mdse., 

Cash. 

Bo't  of  H.  D.  Hollingsworth, 
[as  per  I.  B. 

900 

900 

102 
101 

102 
101 

Mabel  Field, 

MdM., 

Bills  Receivable, 
Mdae., 

1  Shawl,     .                         $10. 
18  #  Parsee  cloth,  @  90<    16.20 
1  pr.  Gloves,       -        •            1.76 

27 
175 

95 

27 
175 

95 

// 

Sold  H.  R.  BaUey  on  note, 
[as  per  B.  R 

101 

Cash. 

Md.e.. 

Cash  sales. 

70 

70 

102 

Expense, 

CMh,    • 

8. 

Ptdd  for  Intnrance, 

0* 

BOlof  Mdse., 

15 

25 

15 

25 

102 
101 

Eva  Hasty, 

Mdse., 

60 

60 

103 
101 

Cash, 

Hiram  Pawley, 
MdM)., 

Sold  H.  Pawley,  Mdse,  and 
[received  part  payment. 

80 
40 

120 

102 

Expense, 

C-ih. 

Paid  fen*  stationery  and  stamps. 

6 

25 

6 

25 

101 

Cash. 

Mdse., 

Cash  sales, 
Amt.  forward, 

65 
643^ 

50 
95 

65 
6439 

50 
95 

9S 


Set  2.] 


JOUENAL-DAY  BOOK. 

8AN  FRANCISCO,  January  4,  I884. 

Forward 

Eva  Hasty 

Mdse. 

1  pr.  Gaiters $3.25 

18  ;^  Pacific  Lawns,  @  60^ 9. 

// 

Henry  Hardcase 

Mdse 

Bill  of  Mdse. 

// 

Cash 

Bills  Receivable 

Rec'd  of  C.  F.  Neil  in  part  pay't  of  her  acc't. 
// 

Cash ; 

Mdse   

Cash  sales. 

5. 

Bills  Receivable 

Mdse 

Sold  Peter  Tramp  on  note  at  60  ds. 
// 

Commercial  Bank 

Cash 

Deposited  in  bank. 

Expense 

Commercial  Bank 

Paid  clerk's  salary,  by  check. 

Cash 

Mdse 

Cash  sales. 

6. 

Mdse 

Bills  Receivable 

Frank  Porter 

Bo't  Mdse.  of  L.  Porter,  and  gave  him  C.  F.  Neil's 
note, — amt.  still  due  on  it,  $100; — bal.  on  ^. 
ff 

Expense 

Commercial  Bank 

Paid  rent  of  store,  by  check. 

Amt.  forward 


Da.       Cr. 


1021 
101 


103 
101 


\02\ 


101 


1021 
101 


102 

V 

102 
102 


101 


101 
102 
103 


102 
102 


1643995 
1225 


75 


200 


40 


100 


2000 


70 


150 


40 


643995 


1225 


918720  9187  » 


75 


200 


4€ 


100 


2000 


70 


60 


100 
50 


4€ 


JOUKNAL-DAY  BOOK. 


Sr  2.] 


MdM. 


SAN  FRANCISCO,  Jan.  6,  I884.  jy^         Cr.       Sdea.* 


102 


V 

101 


101 

101 


102 

103 
102 


1031 
101 


V 

101 


102} 
101 


101 


101 
101 


Forward, 

Commercial  Bank 

Cash 

Deposited  in  bank. 


Cash. 


MdM. 


Cash 


Cash 


Mabel  Field. 
Rec'd  on  <^. 


Bills  Payable 

Discount 

Commercial  Bank • 

Discounted  Gage's  note,  favor  Clara  Shaw, 
and  gave  check  on  bank. 


9187201 
80 


35 


12 


200 


Hiram  Pawley 

Mdse  . . . . 
Sold  him  on  oj^. 


Cash. 


Mdse. 
Cash  sales. 


9. 


Eva  Hasty 

Mdse . . . . 
Sold  her  on  o^. 


Cash. 


Mdse. 
Cash  sales. 


10. 


Mabel  Field 

Mdse... 
Sold  her  on  % 


80 


61 


30 


58 


40 


ma  30 


10 


^18720 
80 

35 
12 


192 


61 


30 


58 


40 


10 


9783)30 


35 


80 


61 


30 


58 


40 


30410 


10 


100 


SsT  2.] 


LEDGER. 
MARINE  OAOE, 


1884 
Jan. 


Bills  Payable.  . . 

^  Loss  and  Gain 

Balance 


200 
l|103|    12935 
Ll03  ^70  65 


2500 


18841 
Jan. 


2  Investment. 


98  2500 


2500 


C,  N.  MILLS. 


18841 
Jan. 


\  Loss  and  Gain  . . 
Balance l 


103 
103 


2300 


1884| 
129|.35'[Jan.|  2|  Investment 
217065 


98 


MD8E. 


18841 
Jan. 


11 


Marine  Gage 

Cash 

Sundries 

Loss  and  Oain u 


99 
103 


1500 
900 
150 


S980 


18841 
Jan, 


258980 


Mabel  Field... 
Bills  Receivable 
Cash 


a'  Eva  Hasty 
3i  Sundries . . 


3'  Cash 

4'  Eva  Hasty 

4!  H.  Hardcase . . . 

4  Cash 

5J  Bills  Receivable 

5:  Cash 

6  Cash 

8'h.  Pawley 

8|  Cash 


9|Eva  Hasty., 
9.  Cash 

10  Mabel  Field 

11  Balance 


981 


98 
99 
99 
99 
99 
99 
100 
100 
100 
100 
1 

Ll 


iOO 


2795 
175 

70 

60 
120 

6550 

1226 

75 

40 
100 

60 

35 

80 

6110 

581 
\i48C 


BILLS  PAYABLE, 


.[98J[_20o|_ 


1884 

Jan. 


8  Sundries. 


11884 
|100||200|    jjan.   2|  Marine  Gage 


101 


Set  2.] 


LEDGER. 
BILLS  RECEIVABLE, 


1884 

Jsn 

2 
2 
5 

C.N.Milli 

Mdse 

98 
98 
99 

300 
173 
100 

1884 

Jan. 
t< 

4 

6 

11 

11 

Cash 

99 

99 

103 

103 

?00 

Mdae 

100 
100 
175 
576 

<( 

(< 

Balance. l 

675 

EXPENSE. 


18841 
Jan 


3Q«h 

3     ••     

6  Commercial  Bank 


13150 


18841 
15|25  Jan 
625 
70 
40 


11 


LoM  and  Oain 


Ll03 


13150 


13150 


MABEL  FIELD. 


18841 
Jan 


10 


Mdae. 


100 


1884J 
95  Jan 

95 


Ca«h... 
Balance 


100 
LI103 


6795 


12 

5596 


EVA  HASTY. 


1884 
Jan 


Mdse. 


Balance. L  103 


10225 


10225 


COMMERCIAL  BANK. 


18841 
Jan 


Cash 


1884 

99 

2000 

Jan. 

5 

100 

80 

6 

8 
11 

\2im\ 

Expense, 


Bills  Payable. 
Balance 


99 

99 

100 

103 


70 

40 

192 

1778 
2080 


102 


Srr  2.] 


LEDGER. 
EIRAM  PAWLEY. 


1884 
Jan 

3 

8 

Mdse 

98 
100 

40 

80 

120 

1884 
Jan,  11 

Balance L 

103 

ISO 

<« 

It 

120 

DISCOUNT  AND  INTEREST. 


1884 
Jan. 


11 


Loss  and  Oain. 


103 


|1884| 
|jan. 


BiU8  Payable. 


100 


HENRY  EARDCASE. 


18841 
Jan 


Mdse. 


iLk 


1884 
an.  ll\  Loss  and  Oain 


L 103      75 


FRANK  PORTER. 


l|i03||    60     |ji 


1884] 
Jan. 


11 


Balance . 


|1884{ 
Fan 


6  Mdse. 


99      50 


LOSS  AND  OAIN. 


1884 
Jan. 


Expense 

H.  Hardcase l 

Bills  Receivable  . . .  l 


102 
103 
102 


18841 
13l|50Uan. 
75 
100 
30650 


Mdse 

Disct.  and  Int. 
Oage  d:  Mills . . 


101 

1031 

LllOl 


3980 

8 

26870 


30650 


BALANCE. 


1884 

Jan. 

" 

ii 

<( 

*' 

" 

<4 

Mdse LlOl 

Bills  Receivable . .  .l  102 

Mabel  Field l102 

Eva  Hasty l102 

H.  Pawley l  103 

Commercial  Bank . .  1 102 
Cash c.  B106 


1480 

175 
5595 

10225 

120 
1778 

68010' 
1439130 


18841 
Jan 


Frank  Porter l 

M.  Gage's  Net  Cap .  l 
Mills's  Net  Cap  ...  L 


1031 
101 
101 


50 
217065 
217065 


103 


BILL 
BILLS 


[Set 


No. 

When 
Kec'd. 

Drawbb 

OB 

Endobsbb. 

Bbawbb 

OB 

Makbb. 

In  Whosb  Fatob. 

Date  of 
Note. 

Time  to 
Run. 

1 
2 
3 

1884 

Jan. 
(< 

2 
2 
5 

C.  W.  Mills. 
Gage  k  Mills. 
Gage  k  Mills. 

C.  r.  Neil. 
H.  R.  Bailey. 
Peter  Tramp. 

C.  W.  Mills. 
Gage  k  Mills. 
Gage  k  MilU. 

1884 
Jan. 

•2  30  ds. 
2  60  ds. 
5  60  ds. 

BILLS 

[Set 

No. 

When 
Iwned. 

Dbawbb 
ok 

EMDOBttB. 

I>SA«BB 

OB 

Makbb. 

In  Whosb  Fatob. 

Date  of 
Note. 

Time  to 
Run. 

1 

1883 
Dec. 

1 

Clara  Shaw. 

Marine  Gage. 

Clara  Shaw. 

1883 
Dec. 

1 

60  ds. 

BILL 
BILLS 


[Set 


No. 

When 
Rec'd. 

Dbawbb 

OB 

Ehdobsbk. 

Dbawbb 

OB 

Makbb. 

Im  Whosb  Fatob. 

Date  of 
Note. 

Timet© 
Ran. 

1 
2 
3 

1884 

July 

It 

1 
2 
4 

H.  Witherspoon. 
W.  k  Locke. 
W.  k  Locke. 

W.  Zimmerman. 
Annie  Girdner. 
Simon  Crafty. 

H.  Witherspoon. 
W.  k  Locke. 
W.  k  Locke. 

1884 
Jun. 
July 

2 
4 

3  mos. 
60  ds. 
60  ds. 

BILLS 


[Sffr 


No. 

When 
Issued. 

Drawbr 

OB 

EitDoiuncR. 

Dbaweb 

OB 

Maker. 

Ik  Wbocb  Fatob- 

Date  of 
Note. 

Time  to 
Run. 

1 
2 

1884 
Jun. 
July 

15 
3 

John  Van  Eaton. 
John  Van  Eaton. 

W.  W.  Locke. 
W.  k  Locke. 

John  Van  Eaton. 
John  Van  Eaton. 

1884 
Jun. 
July 

'I 

90  ds. 
30  da. 

104 


«.] 


BOOK. 
RECEIVABLE. 


WHEN  DUE. 

n 

When  and  How 

Where  Payable. 

Yr. 

4 

1 

i 

7^ 

i 

i 

9 
< 

i 

i 

> 

1 

Amt. 

DiBposed  of. 

San  Francisco. 
San  Francisco. 
San  Francisco. 

1884 
1884 
1884 

1 

2 
6 

300 

175 
100 

Paid. 
Lost. 

2.] 


PAYABLE. 


WHEN  DUE. 

When  and  How 

Where  Payable. 

Yr. 

1 

i 

i 

t 

< 

i 

i 

a 

*•> 

< 

i 

i 

> 

s. 

1 

Amt 

Di«po«Kl  of. 

San  Francisco. 

1884 

30 

200 

Paid. 

3.] 


BOOK. 
RECEIVABLE. 


WHEN  DUE. 

When  and  How 

Where  Payable. 

Yr. 

a 

i 

^ 

s 

1 

-< 

6 
a 

< 

1 

Amt. 

Dlapoeed  of. 

San  Francisco. 
San  Francisco. 
San  Francisco. 

1884 
1884 
1884 

31 

1 
2 

300 
127 
14^ 

50 

Paid. 
Lost. 

3.] 


PAYABLE. 


WHEN  DUK 

When  and  How 

Where  Payable. 

Yr. 

1 

1 

1 

i 

1 

i 

a 

>> 

^ 

< 

1 

i 

1 

1 

Amt. 

Dispoeed  of. 

San  Francisco. 
San  Francisco. 

1884 
1884 

2 

13 

350 
140 

Paid. 

105 


CASH  BOOK. 


Sbt  2.] 


Dr.       Cr. 


1884] 
Jan 


Amount  on  hand 

Paid  H.  D.  HoUingsworth  for  Mdse 

Received  for  Mdse 

Paid  for  Insurance 

Received  of  H.  Pawley,  on  <^ 

Paid  for  Stationery  and  Stamps . . . . 

Received  for  Mdse 

Received  of  C.  F.  Neil,  on  Note. . . 

Received  for  Mdse 

Deposited  in  Commercial  Bank 

Received  for  Mdse 

Deposited  in  Bank 

Received  for  Mdse 

Received  of  Mabel  Field,  on  <^ . . . . 

Received  for  Mdse 

Received  for  Mdse 

Balance 


3000 
70 
80 

200 
40 

60 

35 
12 
61 

58 


3681 


10 


60 


900 
1525 
625 

^2000 
80 


680 


3681 


10 


Sr2.] 


TRIAL   BALANCE. 


Jan.  11.  1884. 


Facx  or  Lbdoek. 


Db. 


Cr. 


Balancbb. 


Dr. 


Cb. 


Marine  Gage 

C.  W.  MUls 

Mdse 

Bills  Payable 

Bills  Receivable 

Expense 

Mabel  Field 

Eva  Hasty 

Hiram  Pawley 

Discount  and  Interest 
Commercial  Bank . . . . 

H.  Hardcase '.  . . 

Frank  Porter 

Cash 


106 


20C 

12550 
200 
575 
13150 
6795 
10225 
120 


2080 
75 

$681 


978330 


2500 
2300 
1109801 

200 

300 

12 


8 
302 

50 


60  3001 


978330 


J300 
S300 


50 


50 


4658 


144020 


50 


95 


275 
131 
559/ 
102 
120 

1778 
75 


68010 


4658 


MODEL  SET  IH. 

In  this  set  a  Journal-Day  Book,  a  Cash  Book,  Bill  Book,  In- 
voice Book,  and  Ledger  wiQ  be  kept.  We  shall  post  from  the 
Jonmal  and  Cash  Book. 

The  Journal,  in  this  set,  has  four  columns.  It  is  readily- 
apparent  that  this  plan  of  increasing  the  number  of  columns 
in  the  Journal  may  be  extended  so  as  to  make  six,  eight,  ten, 
or  even  more  of  these  special  columns  available  for  three,  four, 
five,  or  more  repeatedly  occurring  species  of  Mdse.  or  other 
principal  items  of  exchange. 

Many  book-keepers  use  six  columns,  and  keep  an  account  with 
Cash  in  the  Journal;  but  as  we  are,  in  this  set,  to  post  from  the 
Cash  Book,  it  will  be  a  saving  of  time  to  omit  Cash  from  the 
Journal.  The  advantage  of  using  this  form  of  the  Journal  is 
in  the  saving  of  time  and  labor  in  posting,  as  only  the  footings 
of  these  columns  are  posted — daily,  weekly,  or  monthly,  as  de- 
sired. All  items  for  which  no  special  columns  have  been  pro- 
vided, are  placed  in  the  General  or  Sundries  colimui,  and  each 
of  these  items  is  separately  transferred  to  the  Ledger,  as  in 
posting  from  the  ordinary  Journal. 

All  bills  of  Mdse.  bought  are  pasted  in  the  Invoice  Book,  as 
in  Set  III,  p.  71,  of  Single  Entry.  The  debit  column  of  Mdse. 
in  the  Journal  contains  the  same  amoimts  as  the  Invoice  Book ; 
consequently,  we  need  not  post  from  the  Invoice  Book.  The 
Sales  Book  is  seldom  kept,  except  in  wholesale  or  large  retail 
establishments. 

San  Francisco,  July  1,  1884.  Henry  Witherspoon  and  W.  W. 
Locke  commenced  business  as  partners,  under  the  firm  name  of 
Witherspoon  &  Locke.    Gains  and  losses  to  be  equally  divided. 

Henry  Witherspoon  invests  cash,  $3500;  Wm.  B.  Zunmerman's 
note,  his  favor,  dated  June  1,  ^84,  at  3  mos.,  for  $300;  balance 
due  on  %  from  Frank  Herbert,  $200. 

W.  W.  Locke  invests  cash,  $1500;  Mdse,  $1000;  and  the  firm 
agrees  to  assume  the  following  liabilities  of  W.  W.  Locke:  twte 
held  by  John  Van  Eaton  for  $350,  dated  Juhe  15,  '84,  at  90  ds.;  a 
personal  account  due  Oliver  Webb,  amt.  $150. 

July  2.  Deposited  $4800  in  Commercial  Bank.  Bo't  of  Votaw 
&  Co.,  a  bill  of  Mdse.,  as  per  invoice,  $1450;  gave  check  on  Com- 

107 


MODEL  SET  lU. 

mercial  Bank  for  $950; — balance  on  ojc.  Sold  Mary  Kelsey,  on  fl|fc, 
20;!ff  black  velvets,  @  75^;  50  J!^  linen  lawns,  @  25^;  1  shawl, 
$30;  6  prs.  ladies'  kid  gloves,  @  95^;  2  prs.  ladies'  French  kid 
shoes,  @  $4.50.  Paid  cash  for  account  books,  $12.50.  Rec'd  cash, 
on  ojcy  of  Prank  Herbert,  $60.  Sold  Annie  Girdner,  on  note  at  60 
ds.,  20;^  French  silk,  @  $3;  25  #  polonaise  suitings,  @  75^;  1 
Thibet  shawl,  $25;  30  ;^  Rhadama  cloth,  @  45^;  50  iff  calico,  @ 
6}^;  2  ladies'  hats,  @  $3.25.  Cash  sales,  $90.  In  counting  the 
cash  we  found  a  $20  counterfeit  bill.  3.  Discounted  W.  W. 
Locke's  note,  favor  of  J.  Van  Eaton,  paying  cash,  $200,  and  giv- 
ing the  firm's  note,  at  30  ds.,  for  the  balance,  $140.  Bo't  a  safe 
for  the  store  and  paid  for  it,  by  check  on  Commercial  Bank, 
$500.  (>ave  Oliver  Webb  an  order  on  Mary  Kelsey  for  $30.  Cash 
sales,  $85.50.  4.  Sold  Simon  Crafty,  on  his  note  at  60  ds.,  50 
#  Brussels  carpet,  @  $2.25;  10;^  broadcloth,  @  $2.50;  1  pr. 
boots,  $5.  Sold  Geo.  Aimless,  on  <^,  1  pr.  alligator  boots,  $16; 
9  f^  broadcloth,  @  $2.50;  6  prs.  hose,  ®  45^;  1  hat,  $3.  Loaned 
V.  Domberger,  cash,  $25.  Cash  sales,  $81.10.  5.  Deposited  in 
Commercial  Bank,  cash,  $125.  Sold  Pet^r  Nasby,  50  prs.  Oxford 
shoes,  @  $3.50;  25  prs.  French  ties,  @  $3;  25  prs.  slippers,  @ 
50^;  rec'd  cash  $100; — balance  on  <^.  Paid  clerk's  salary  by 
check  on  Commercial  Bank,  $75.  Cash  sales,  $73.50.  6.  Biu-glars 
broke  into  the  store  and  took  from  the  till,  cash,  $90.  Sold 
Oliver  Webb,  on  <^,  2  prs.  kip  brogans,  @  $3.50;  1  hat,  $3.75; 
5  t/^  broadcloth,  @  $2.50;  1  rubber  coat,  $6.50;  J  doz.  linen  hdkfs., 
@  $4.80;  1  neck-tie,  50^.  Discounted  Wm.  B.  Zimmerman's  note 
at  Odd-Fellows'  Bank,  and  rec'd  cash,  $285.  Cash  sales,  $97.  8. 
Bo't  of  Votaw  &  Co.,  on  <^,  a  bill  of  Mdse.,  as  per  invoice,  $150. 
Bo't  of  Jones  &  Co.,  for  cash,  5  tons  of  coal,  @  $14.  Cash  sales, 
$128.  9.  John  Carpenter  has  worked  2^  days,  @  $3,  repairing 
store,  and  we  have  paid  him  in  Mdse.  Henry  Witherspoon  has 
taken  Mdse.  to  date,  valued  at  $88.  Simon  Crafty  has  failed, 
and  we  have  lost  the  amount  of  his  note.  Geo.  Aimless  has 
absconded  and  we  have  lost  his  account.  Cash  sales,  $86.80.  10. 
Sold  Peter  Nasby,  on  %  120  l/f  Merrimack  cambric,  @  15^;  50  ;!^ 
Ky.  jean,  @  30^;  25;^  cashmere,  @  $1;  50;ff  gingham,  @  8^. 
Paid  cash  for  rent  of  store,  $60.  Took  an  inventory,  and  found 
Mdse.  on  hand.  $1791 :   office  safe  valued  at  $475,  and  coal,  $40. 

108 


8 


U 


-w 


TT 


8 

i 


"W 


e»r^ 


g 


d  3  « 


OS  M 


ts 


11 


02 


2L 

a 


a 

38S^ 


e  e 


^ 


l5 


109 


1^ 


^ 


-fT 


<=>  I 

-J. 

Q   8 

■i 

Si; 

5 


-B5 W 


CO  C4  «d 


|2a 


CO 


^o5    2 


^   .. 


1 
e 

11 


5 


« .• 


6-§ 
I 


I 


if  ^ 


^^ 

g 

I 

o 

:§ 


?1  S 


IT 


!!• 


g g. 


t 


g. 


isr 


"W 


TT 


as 


«dcic4eo 


^ 


M 

•J 
< 

0: 

^5 


t^  CO  cj  «o  c4 


••-        g  fci  «  •  rs 


-PT 


K5  SS 


A 


J. 


ui 


V 


UNIVERSITY 


M 
O 
O 

PQ 

I 

O 
Ha 


^ 


1^ 

i 

_j 

5 

B 

1 

S 

^ 

% 

1" 

»ft 

W5 

^  s 

S  e? 

s 

§* 

§ 

^ 

c4 

rt 

R 

^ 

*i 

^^ 

^N 

riH 

m4 

»^ 

• 

i 

JB 

212^- 

i 

• 

1 

:    :   :    : 

• 

S 

1 

»i'» 
®  ^ 

1   ^ 

s 

0 

^   AJ 

'i 

2 

1 

J 

.9 

2  S 

i 

J 

> 

Sg. 

^1 

1-^ 

^1 

'^^ 

p5 

1 
1 

•   a 

i  i  i  s 

1^ 

1 

8^ 

"^  Uj  o  o 

S5 

>:2==^^=5^ 

3 

^s 

1^ 

^  s 

|§SSS 

*  s 

1^ 

J2; 

s 

a. 

H 

1 

p^ 

« 

ifl 

w 

kd 

W 

l4 

— 

- 

^ 

'^ 

- 

b 

g 

S 

« 

g| 

« 

r- 

§8 

g 

o  8 

O 

1 

t^ 

SS 

§ 

la 

s§  g 

S          1 

s 

^    1 

i 

112 


Set  3.] 


LEDGEE. 
HENRY  WITMERSFOON. 


1S84 
July 


Mdse. . . 
Balance 


.112 
h\U\3991 


81 


407987 


1884 
^uly 


10 


Investment  . . . 
Loss  and  Gain . 


109  40001 
114 


407987 


7987 


W.  W.  LOCKE, 


1884 
July 


Sundries , 
Balance. 


109 
114 


500 


em 

5578 


1884 
July 


'07988 
7988 


10 


Investment . . . 
Loss  and  Gain , 


..109 

.Lll4 


12500 
7988 


257988 


MERCHANDISE. 


1884 
July 


Sundries 

Loss  d:  Gain . 


112 
114 


2600 
671 


3271|45 


4S 


1884 
LTuly 


Sundries . 
Cash.... 
Balance. . 


.c.  B 
. .  .L 


112 
116 
114 


83856 


641 

1791 


327145 


90 


BILLS  RECEIVABLE. 


1884 

July 


H.  Witherspoon 1109 

Mdse 110 

111 


300 
127 
142501 


56950 


1884 
July 


I 

»  Sundries 

10,  Loss  and  Gain l 


'i 


Balance. 


Ill 

114 

l|114 


300 
14250 

127 


56950 


BILLS  PAYABLE. 


18841 
July 


Sundries 

Balance l 


110 
114 


350 
140 
490 


1884 
July 


W.  W.  Locke 
Bills  Payable.. 


109 
110 


350 
140 


490 


FRANK  HERBERT. 


1884 
July 


H.  Witherspoon. 


109 


200 


200 


1884 
July 


10 


Cash ... 
Balance 


.c.  B 
...L 


116 
114 


113 


8n  3.] 


LEDGER. 
V.  DORNBERQER. 


July  4  Cash c  b116 


11884 


25  J/tt/yiO 


Balance l114      25 


LOSS  AND  GAIN. 


1884 

July 

2 

6 

10 

10 

10 

IC 

10 

Cash c.  b116 

"     c.Blie 

Bills  Receivable  ...  l  1 13 

Disci,  and  Int L  115 

Geo.  Aimless l  115 


Expense 
Stock... 


LJ115 
113 


20 
90 
142501 


671 


4420 
210 

1597^ 


45 


1884 
July  10 


Mdae. 


113 


67145 


67145 


BALANCE. 


1884 
Julyl 


Cash 

Mdse 

Bills  Receivable  . 

Frank  Herbert  . . 

Commercial  Bank 

Mary  Kelsey 

Peter  Nasby 

101  Expense 

id  V.  Domberger. . . 


c.  B 


Lll5 

Lll5 
LJllS 
14 


16 

l!113 

l|i13 

113 

lI115  134001 


68440 
1791 
12 
1401 


694910 


4220 
224  5<^ 
515 

25 


1884 
July 


Bills  Payable l113 

OUverWebb l114 

Votaw&Co L114 

H.  Witherspoon ...  L 113 
W.  W.  Locke L113 


140 

87 

650 

^991 


207988 


694910 


87 


OLIVER  WEBB. 


1884 
July 


10 


Mary  Kelsey 

Mdse 

Balance. L 


not 

111 
114, 


150 


30 
32661 

8? 


1884 

July  2|  W.  W.  Locke 


SS 


109 


150 


150 


VOTAW   &    CO. 


1884 
July  10 


Balance ill4 


650 


650 


1884 
July 


114 


2  Mdse. 
8     "     . 


109 
112 


500 
150 
950 


Srr  3.] 


LEDGER. 
COMMERCIAL  BANK. 


1884 
July 


Cash. 


Bll6 
Bll6 


[4800 
125 


4925 


1884 
July 


2lMd8e... 
Elxpenae, 


Balance. 


109 
110 
HI 
114 


950 

500 

75 

3400 


4925 


MAEY  KEL8EY. 


1884 
July 


2  Mdae 


109 


1884 
72|20lJuly 


7220 


Oliver  Webb 
Balance 


110 
114 


30 

4£S0 

7220 


DISCOUNT  AND  INTEREST. 


1884 
July 


6  Bills  Receivable 


1884 

111 

15 

July 

3 

W 

15 

Bills  Payable. 
Lost  and  Oain . 


.110 

Lll4 


GEO.  AIMLESS. 


1884] 
July 


Mdae. 


11 


LP 

20|A 


11884 
44\2XmJuly  10\  Loss  and  Oain 


M 


44^0 


PETER  NASBY. 


1884 
July 


Mdse. 


Ill 
115 


22450 


\i 

162|60|/Wy|iO|  Balance l 

62 


114 


S2450 


22450 


EXPENSE. 


18841 
July 


3  Commercial  Bank . . . 
5 
Mdse 


10  Cash c.b'116 


115 
111 

112 


500 
75 

50 
14250 
725 


1884 

July  ICk  Balance. 


10  Loss  and  Oain 


Lll4 

Lll4 


616 
fSlO 


726 


115 


"g~l" 


s  I  ^  §  s 


5 


J 


i 


■a  <§) 


i  s 

s  s 

s  S. 

6  (3 


i 


J 


$     .2 

I  i 


a 

I 

3 

I 


V 

3 
I 


II 
1^ 


M 
o 
o 

» 


"KT 


■51 — 51 — sr 


i  -^ 


T 


88 


s  s  s 


wr^ 


s 


¥" 


T 


¥ 


S 


s; 


I 


# 


1  1  I 

«<   £   a 


-;:5 — sr 


S  I  S 

-  CO  " 

95  ^  ® 

tJ  ^  '« 

s  '^  s 


I  1 


-«- 


"W 


116 


TRIAL  BALANCE  AND  BALANCE  SHEET, 

Set  3.]  July  10,  IS84. 


Jvly  1  to  July  10,  I884. 


Henry  Witherspoon .  . 

VV.  W.  Locke 

Merchandise 

Bills  Receivable 

Bills  Payable 

V.  Domberger 

Oliver  Webb 

Frank  Herbert 

Votaw  &  Co 

Commercial  Bank . .    . . 

Mary  Kelsey 

Discount  and  Interest 

<«eo.  Aimless 

Loss  and  Gain 

Peter  Nasby 

Expense 

Cash 


Trial  Balance. 
Face  or  Ledger. 


Db. 


88 

600 

2600 

569501 

3r)0 

25 

62651 
200 

4925 

72201 

15 

44201 
110 
224 
725 
684401 


50 


Cr. 


4000 
250d 
14804^ 

300 

490 


150 

60 

650 

1525 

30 

10 


\1791 
127 

25 

140 

3400 
42201 


224501 
515 
684  401 


19545  11 195145  694910  87735  51170  67145 


K)2 


140 
873^ 
650 


L0S8E8. 


14250 


20 


GAHfa. 


67145 


REVIEW  QUESTIONS. 

1.  Define  DouTble  Entrj-  Book-keeping.  2.  State  the  main 
differences  between  Double  and  Single  Entry  Book-keeping.  3. 
What  are  the  advantages  of  Double  Entry  compared  with  Single 
Entry?  4.  What  is  meant  by  a  "Set  of  books?"  5.  State  the 
differences  between  the  Double  and  the  Single  Entry  Day  Books. 
6.  What  statement  is  usually  made  the  first  entry  in  the  Double 
Entry  Day  Book?  7.  What  is  the  Italian  system  of  book-keep- 
ing ?  8.  Define  the  Journal.  9.  What  is  a  Journal-Day  Book  ? 
10.  What  is  journalizing?  11.  Where  are  debit  items  in  the 
Journal  placed?  12.  Wliere  are  credit  it^ms  in  the  Journal 
placed?  13.  Why  may  "Dr."  and  "To"  be  omitted  from  the 
Journal?  14.  How  do  you  make  the  Day  Book  explanation  in 
the  Journal-Day  Book  ?     15.   What  Is  the  value  of  extra  columns 

117 


REVIEW  QUESTIONS. 

in  the  Journal t  16.  What  is  the  principal  use  of  the  Ledger? 
17.  What  is  the  diflference  between  the  Single  and  the  Double 
Entry  Ledger?  18.  What  are  found  on  the  debit  side  of  the 
Ledger;  on  the  credit  side  ?  19.  In  posting  debit  items  from  the 
Journal,  what  explanation  is  used  in  the  Ledger?  20.  In  posting 
credit  items,  what  explanation  is  used?  21.  State  the  use  of  the 
Cash  Book.  22.  Why  is  it  not  necessary  to  keep  a  cash  account 
in  the  Ledger?  23.  Why  should  the  "cash  balance"  be  entered 
in  the  Trial  Balance?  24.  Define  the  Sales  Book.  25.  Why  is 
it  seldom  used?  26.  What  is  an  Invoice  Book?  27.  State  a 
simple  plan  of  keeping  this  book.  28.  Why  must  an  Invoice 
Book  be  kept?  29.  What  is  a  Bill  Book?  30.  From  what 
books  may  transactions  be  posted  directly  to  the  Ledger?  31. 
What  is  the  advantage  in  posting  from  the  C.  B.,  I.  B.,  and 
S.  B.  ?  32.  How  many  kinds  of  accounts  in  Double  Entry  ?  33. 
Name  and  define  the  classes  of  accounts.  34.  Why  do  we  call 
one  class  a  Representative  or  Loss  and  Gain  account?  35.  Why 
is  the  other  class  called  a  Real  or  Balance  account  ?  36.  How  do 
you  determine  that  an  account  is  a  Representative  account  ?  37. 
How  do  you  determine  that  an  account  is  a  Real  or  Balance  ac- 
count? 38.  When  does  a  Balance  account  show  a  Resource; 
when  a  Liability?  39.  When  does  a  Representative  account  show 
a  Gain;  when  a  Loss?  40.  Name  the  accounts  that  are  usually 
Balance  accounts.  41.  Name  the  accounts  that  are  usually  Loss 
and  Gain  accounts.  42.  What  is  meant  by  "Opening  a  set  of 
books?"  and  with  what  is  the  proprietor  debited;  with  what 
credited  ?  43.  How  is  the  opening  entry  made  in  the  Day  Book ; 
in  the  Journal-Day  Book  ?  44.  When  and  why  is  a  "  Set  of  books  " 
closed?  45.  Is  it  necessary  to  close  aU  the  Ledger  accounts  in 
order  to  know  the  condition  of  business?  46.  What  does  the 
^ebit  side  of  Mdse.  account  show?  47.  What  does  the  credit 
side  show,  after  the  Inventory  is  entered?  48.  What  does  the 
debit  side  of  Bills  Receivable  show;  the  credit  side?  49.  What 
does  the  debit  side  of  Bills  Payable  show;  the  credit  side?  50. 
What  is  found  on  the  debit  side  of  Expense  account;  on  the  credit 
side?  51.  What  is  a  Trial  Balance,  and  why  is  it  taken?  52. 
How  is  a  Trial  Balance  made?  53.  How  is  an  account  in  the 
Ledger  closed  ?    54.   Give  a  statement  of  the  manner  of  closing 

118 


REVIEW  QUESTIONS. 

n  '^Set  of  books,"  mentioning  the  various  steps  in  their  order.  55. 
Why  is  the  Mdse.  Inventory  entered  on  the  credit  side  o{  the 
Jtldse.  account?  56.  What  other  accounts  may  have  an  Inven- 
tory credit  f  57.  State  the  use  of  red  ink  in  Double  Entry.  58. 
^7hy  are  the  various  Inventories  placed  on  the  debit  side  of  Bal- 
r,nce  account!  59.  When  a  Representative  account  is  closed, 
what  is  brought  down  under  the  ruHngs  T  60.  When  a  Balance 
recount  is  closed,  what  is  brought  down  under  the  rulings?  61. 
"Why  are  these  items  brought  down,  and  on  which  side?  62. 
When  and  why  is  a  Loss  and  Gain  account  opened  ?  63.  Which 
ride  of  this  account  shows  gains;  which  side  losses?  64.  After 
closing  Loss  and  Gain  account  into  "Stock,"  what  wiU  the  dif- 
ierence  between  the  two  sides  of  Stock  account  show  ?  65.  When 
and  why  is  a  Balance  account  opened  ?  66.  What  does  the  debit 
ride  of  Balance  account  represent;  the  credit  side?  67.  What 
does  the  difference  between  the  two  sides  of  Balance  account 
fhow?  68.  Why  will  Stock  account  balance  after  "Loss  and 
Gain  "  and  "  Balance"  have  been  closed  into  it?  69.  What  term  is 
used  to  represent  the  difference  between  the  two  sides  of  an  ac-. 
count  when  you  close  the  account  ?  70.  Dlustrate  by  giving  the 
lerm  generally  used  in  closing  BiUs  Pay.,  Mdse.,  Loss  and  Gain  and 
Balance  accounts.  71.  Why  is  it  not  necessary  to  open  a  Balance 
account  at  the  time  of  closing  the  Ledger  accounts?  72.  What 
is  a  Balance  Sheet;  and  when  and  why  is  it  made  out?  73.  Why 
do  entries  change  sides  when  transferred?  74.  Is  the  proprietor's 
investment  usually  considered  a  Resource,  or  a  Liability  to  the 
concern?  75.  Give  a  rule  for  debiting.  76.  Give  a  rule  for 
crediting.  77.  What  is  the  fundamental  rule  on  Double  Entry  ? 
78.  How  do  you  mark  the  Day  Book  entries  when  they  have  been 
transferred  to  the  Journal?  79.  How  do  you  mark  Journal 
entries  when  they  have  been  transferred  to  the  Ledger?  80. 
Give  a  list  of  debits;  of  credits.  81.  Define  Mdse.  82.  What 
items  are  generally  included  under  the  term  "Expense?"  83. 
Define  the  term  "  Stock."  84.  Why  is  a  Bank  account  not  usually 
kept  in  the  Ledger  ?  85.  What  is  meant  by  "  discounting  a  note  ?" 
86.  When  and  why  do  we  debit  Discount  and  Interest?  87. 
When  and  why  do  we  credit  this  account?  88.  Why  is  an  ac- 
count, termed  "Lost  Accounts  and  Notes,"  sometimes  opened  in 

119 


REVIEW  QUESTIONS. 

the  Ledger!  89.  If  not  kept,  what  is  done  with  worthless  per- 
sonal accounts,  and  bad  notes  ?  90.  Define  "  Sundries."  91.  Why 
may  it  be  omitted  from  the  Journal  t  92.  How,  and  wlien,  is  it 
convenient  to  use  it  in  the  Ledger!  93.  Is  it  ever  used  as  a 
Ledger  heading!  94.  Give  a  fuU  statement  of  the  manner  of 
changing  a  set  of  Single  Entry  books  to  Double  Entry.  95. 
What  is  usually  done  when  a  new  partner  is  taken  into  the  busi- 
ness! 96.  How  do  you  correct  errors  in  the  Day  Bookj  in  the 
Journal;  in  the  Ledger!  97.  What  is  an  Index!  98.  Where, 
und  how,  is  an  Index  usually  kept !  99.  Examine  Model  Set  II, 
last  page  of  the  Journal,  and  state  the  benefit  of  using  three 
columns  in  the  Journal.  100.  Examine  Model  Set  HI,  and  state 
the  benefits  arising  from  the  use  of  four  columns  in  the  Journal. 
101.  What  is  done  with  the  cash  transactions  in  this  set!  102. 
Why  does  the  term  "cash"  appear  at  all  in  the  Journal-Day  Book 
of  this  set!  103.  Examine  the  Cash  Book  of  this  set  and  explain 
the  manner  of  posting.  104.  How  many  columns  may  be  used  in 
A  Journal!  105.  Compare  the  methods  of  finding  Losses  and 
Gains  in  Single  and  in  Double  Entrj-.  106.  Compare  the  methods 
<^  finding  the  Net  Capital  at  closing  in  these  two  systems. 


EXERCISES  FOR  THE  STUDENT. 

Set  1.  Write  this  set  in  the  Italian  form,  using  Day  Book, 
Journal,  Cash  Book,  and  Ledger.  Give  special  attention,  so 
that  the  check-marks  in  the  Day  Book,  the  Journal  pages  in  the 
Ledger,  and  the  Ledger  pages  in  the  Journal,  are  set  down 
immediately  after  the  journalizing  and  posting  are  done. 

Student  commenced  business  Jan.  1,  1884,  by  investing  as  fol- 
lows: Mdse.j  $850  J  cashj  $700. 

Jan.  2.  Sold  D.  T.  Seeley,  on  <}6,  5  ;^  tea,  @  40^;  10  ;^  coffee, 
@  20^j  240  ;ff  potatoes,  @  IJ^.  Paid  cash  for  a  set  of  account 
books,  $7.50.  Bo't  of  L.  M.  Dranga,  for  cash,  140  C.  of  wheat,  @ 
$1.80  per  C.  Cash  sales  to-day,  $48.50.  3.  Sold  C.  A.  Lee,  on 
note  at  60  ds.,  50  C.  wheat,  @  $1.90  per  C.j  125  ;ff  sugar,  @  12 J^. 

120 


EXERCISES  FOR  THE   STUDENT. 

Sold  A.  R.  Sheats,  4  boxes  soap,  @  $1.50;  5  ^  syrup,  @  80^f 
600]^  flour,  @  $3.25  per  C.j  rec^d  cash,  $15  j — ^balance  on  acc't. 
Paid  cash,  for  insurance,  $10.50.  Cash  sales,  $61.  4.  Sold  D.  T. 
Seeley,  on  ^,  a  bOl  of  Mdse.,  $42.  Sold  Ida  Thomas,  4  ;ff  vinegar, 
@  50^;  60;!^  sugar,  @  13^}  1  keg  pickles,  $2.25;  recVl,  in  ex- 
change, 8  }^  eggs,  @  35^  J — ^balance  on  acc't.  Bo't  of  S.  W.  Smith, 
on  Ojhj  400  }^  sweet  potatoes,  @  3^.  Cash  sales,  $38.50.  Rec'd  cash, 
on  %  of  D.  T.  Seeley,  $20.  Sold  Ida  Thomas,  on  ^,  1  ham,  20  ^, 
@  20^.  Bo't  of  F.  M,  Young,  for  cash,  16  }j(  eggs,  @  30^.  Rec'd 
cash,  $25,  from  C.  A.  Lee,  to  apply  on  note  of  3d  inst.  Sold  A. 
R.  Shcats,  on  %  a  bill  of  Mdse.,  $30.  Cash  sales,  $42.  6.  Sold 
D.  T.  Seeley,  on  <5fe,  40  ;^  sweet  potatoes,  @  4^;  80  j!^  sugar,  @ 
13^.  Rec'd  casli,  in  full  of  «/:,  of  Ida  Thomas.  Sold  F.  M.  Young, 
a  bill  of  Mdse.,  $68,  and  rec'd  cash,  $40.  Paid  cash,  for  stationery, 
$4.25.  Sold  W.  H.  Bailey,  on  note  at  30  ds.,  a  bill  of  Mdse.,  $110. 
Bo't  of  A.  E.  Sheats,  on  ^{fc,  120  C.  ground  bai-ley,  @  $1.85  per  C. 
Cash  saJes,  $65.  8.  Rec'd  cash  in  full,  of  C.  A.  Lee,  for  balance 
due  on  note  Sold  M.  F.  Young,  on  ^r,  300  J^  flour,  @  $3  per  C; 
80  ^  fcfweer  potatoes,  @  UC,  Casli  sales,  $25.  9.  Bo't  of  S.  W. 
Smith,  on  <^,  600  iff  dried  peaches,  @  15?.  Sold  A.  R.  Sheats, 
8  bbls.  floa**  ®  $6.25  j  rec'd  check  for  $40; — balance  on  acc't. 
James  Trimble  has  worked  for  us  5  dajs,  i^epairing  sidewalk,  @ 
$2  50;  <vnd  we  have  paid  him  in  cash.  Cash  sales,  $47.  10.  Sold 
Peter  Cooper,  on  %  450  j6^  wheat,  $1.90  per  C. ;  10  ;^  vinegar,  @ 
60<^;  40  J^  bacon,  @  18?.  Chas.  Jones  has  worked  for  us  8  ds.  in 
store.  @  $2;  we  let  him  have  Mdse.  for  that  amt.  Cash  sales, 
6&^i     Tco^.  an  inventory  and  found  Mdse.  on  hand,  $575. 

Set  2J.  Write  this  set  in  Journal-Day  Book  form,  placing  the 
Day-Book  explanation  below  the  Journal  entry. 

Student  commenced  business,  May  1,  '83,  with  resources  and 
liabilities  as  foUows: 

Resources:  Cas^,  $4000;  Jtfifse.,  $5000 ;  Davis  W.  Hunter's  w{>^, 
at  60  ds.,  favor  of  student,  dated  April  1,  '83,  for  $370;  Edward 
Sheldon  owes  him,  on  <56,  $310. 

Liabilities:  KofCj  favor  C.  H.  Osborn,  dated  March  1,  '83,  for 
$450;  balance  due  R.  A.  Cohnan,  on  %  $300. 

May  2     Bo't  of  Fletcher  &  Co.,  on  ^,  silks  as  per  invoice. 

121 


EXERCISES  FOR  THE   STUDENT. 

$287.40.  Paid  for  insurance,  $18.  Paid  cash  for  acc't  books,  $10. 
Sold  T.  R.  Foster,  on  of:,  425  ;^  blk.  velvets,  @  75^  j  120  fj^  Foulard 
silk,  @  63?.  Sold  R.  S.  Otis,  on  his  note  at  30  ds.,  50  doz. 
English  hose,  $2.50;  300  f^  spring  chintzes,  @  6?;  200  j^  bourette 
suitings,  @  75?.  Bo't  of  L.  W.  Toland,  for  cash,  an  invoice  of 
cassimeres,  $219.35.  3.  Sold  R.  H.  Taylor,  for  cash,  200  ff  lace 
bunting,  @  85?  4.  Sold  T.  R.  Foster,  on  %  300  f^  linen  lawns, 
%  25?.  Sold  D.  Williams  &  Son,  on  <56,  450  doz.  children's 
stockings,  @  $1.80.  5.  Sold  Geo.  H.  Stevens,  for  cash,  275  ;ff 
jashmere,  (§)  60?.  Paid  cash  for  an  invoice  of  Mohairs,  $147.30. 
5.  Paid  for  shelving,  $6.25.  Sold  R.  S.  Otis,  receiving  in  pay- 
ment his  check,  3  doz.  Thibet  shawls,  @  $60;  2  doz.  long  shawls, 
@  $90.  8.  Sold  W.  H.  Curtis,  for  cash,  360  fj^  blk.  tamise,  @  65?. 
9.  Rec'd  from  T.  R  Foster,  cash  on  <56,  $467.50.  Discounted 
Davis  W.  Hunter's  note,  and  received  cash,  $360.  10.  Paid  for  an 
invoice  of  shawls  and  gloves,  $214.75.  Paid  express  charges  on 
this  invoice,  $4.50.  11.  Rec'd  from  Edward  Sheldon,  cash  on 
Jjfe,  $250  12.  Sold  T.  R  Foster,  on  %  240  f^  shepherd's  plaids, 
^35?;  160;^  tilliard  cashmere,  @  $2.30.  13.  Paid  for  adver- 
tismg  in  San  Jose  Mercury,  $7.25.  15.  Paid  note,  favor  C.  H 
Osbom,  less  discount,  $438.  16.  Sold  Edward  Sheldon,  on  %  3 
doz.  Paisley  shawls,  @  $30;  320;^  Parsee  cloth,  @  7?;  128;^ 
debege,  @  35?.  17.  Paid  for  an  invoice  of  silks,  bo't  of  Dunn  & 
Co.,  $285.  Bo't  of  Fletcher  &  Co.,  on  ^,  an  invoice  of  blk.  silks, 
$542.25.  18.  Sold  C.  R  Gibson,  for  cash,  245  :^  spring  gingham, 
@  ^?.  Paid  San  Jose  Times,  for  advertising,  $8.50.  19.  Rec'd 
of  r.  R  Poster,  cash  in  full  of  acc't.  20.  Bo't  of  Fletcher  &  Co., 
on  our  note  at  3  mos.,  300  i^  check  silks,  @  63?.  21.  Sold  M.  H. 
Hill,  for  cash,  275  i^  linen  lawns,  @  20?;  120  j^  satin  hemani,  @ 
45?.  22.  Accepted  Fletcher  &  Co.'s  draft  on  us  at  30  ds.,  favor 
R  W.  Ford,  in  payment  for  silks  purchased  on  17th  inst.  23. 
Student  drew  out  cash  for  private  use,  $225.  24.  Bo't  of  Fletcher 
&  Co.,  on  <5fe,  an  invoice  of  Mdse.,  $1895.45.  25.  Rec'd  of  Edward 
Sheldon,  cash  in  settlement  of  his  acc't.  26.  Paid  Fletcher  & 
Co.,  in  full  of  acc't.  28.  Sold  R.  A.  Colman,  on  %  120  ;^  cam- 
brics,  @  8?.  29.  Rec'd  of  R.  S.  Otis,  on  ^  of  his  note,  $50. 
30.  Paid  B.  A.  Colman  balance  due  him.  Paid  clerk's  salary  and 
rent  of  store  to  date,  $125.    Inventory  of  Mdse.  on  hand,  $7625.50. 

122 


EXERCISES  FOR  THE  STUDENT. 

In  the  following  set,  let  the  student  use  the  Journal-Day 
Book  form. 

Set  3.  A.  Cochrane  commences  business,  Aug.  1,  1883,  with 
the  following  resources  and  liabilities.  Resources :  Cash,  $800; 
Mdse.j  $900 J  and  a  note  against  A.  Taylor  for  $250.  Liabilities: 
He  owes  F.  M.  Mills,  on  <^,  $200. 

Aug.  2.  Sold  H.  V.  Martin,  on  %  20  j^  silk,  @  $2.50  j  5  ;K  lace, 
@  25^;  6  j^  ribbon,  @  25^.  Sold  L.  A.  Bride,  on  <^,  50  )jC  grena- 
dine, @  75^ ;  20  iji  cassimere,  @  $1.12J.  Rec'd  cash  on  (^,  $50. 
Rec^d  for  cash  sales,  $50.  3.  Bo't  of  E.  Asmus,  250  ^  plush,  @ 
$1.50,  and  gave  in  payment,  my  note  at  30  ds.,  for  $100,  and 
cash  to  balance  acc't.  Paid  for  sundry  expenses,  $15.  4.  Sold 
Miss  I.  C.  Nichols,  on  ^,  trimmings,  $40;  20  jj^  sheeting,  @  12 J^; 
40  jj(  muslin  @  $1.25;  she  gave  us  an  order  on  H.  V.  Martin  for 
$42.50,  which  Martin  paid.  A.  Coc^hrane  takes  out  Mdse.,  $100, 
cash,  $100.  Rec^d  cash  sales,  $75.  3.  Sold  M.  A.  Parks,  on  note 
at  30  ds.,  my  collection  of  remnants,  $250.  Bo't  of  A.  Stowell, 
on  %  2  Jersey  jackets,  @  $5;  25;^  linen,  @  20^.  Gave  A. 
Stowell  an  order  on  L.  A.  Bride  for  $25.  Found  a  purse  contain- 
ing $20;  no  one  claimed  it.  6.  Paid  F.  M.  Mills  cash,  on  (^,  $150. 
H.  V.  Martin  has  failed ;  we  accept  a  compromise  at  20  ^  on 
the  dollar.  Rec'd,  for  cash  sales,  $100.  7.  Found  $10  missing 
from  the  cash  drawer.  Sold  F.  M.  Hayes  my  entire  stock  of 
silks,  $500;   rec'd  cash  on  %  $250.     Rec'd  for  cash  sales,  $100. 

8.   A.  Stowell  paid  cash  in  full  of  ^^,  $ Sold  T.  Cheeney, 

for  cash,  25;^  merino,  @  $1.25;  90  ;ff  linen  lace,  @  12J^;  10;ff 
satin,  @  $2.50.  Paid  for  paper,  $5,  pens,  $1.  A.  Taylor  paid 
his  note  in  full,  $250.  9.  Gave  $50  to  a  charitable  institution. 
Bo't  of  D.  Anderson,  400;^  linen,  @  25^;  1000  ;K  calico,  @ 
12i^;  400;^  silk  plush,  @  $3.50.  Paid  $250,  and  gave  him 
note,  at  30  ds.,  for  balance  due.  10.  Deposited  in  the  Bank  of 
San  Jose,  $800.  Rec'd  an  order  from  A.  StoweU,  requesting 
us  to  pay  John  Smith  $50.  Paid  store  rent,  $75.  Closed  busi-. 
ness,  with  Mdse.  on  hand,  $1750. 

Write  this  set  in  Journal-Day  Book  form,  placing  the  Day 
Book  explanation  at  the  right  of  the  Journal  entries.  Use  an 
I.  B.  and  a  C.  B.;   do  not  keep  a  cash  account  in  the  Ledger. 

123 


EXERCISES  FOR  THE  STUDENT. 

Set  4.  Sacramento,  Aug.  1,  1884.  Student  commenced  busi- 
ness with  resources  and  liabilities  as  follows:  Resources:  Cashf 
$3500;  Mdsf.  $1800  J  an  acc't  against  J.  W.  Webster  for  $325. 
Liabilities:  Henry  Fish  holds  Student's  note  for  $300,  dated 
July  1,  1884,  at  60  ds. 

Aug.  2.  Bo't  of  John  Fry,  on  ^,  100  kegs  nails,  $450;  4 
doz.  door  locks,  $32;  10  gate  hinges,  $7.50;  4  tons  bar  iron, 
$200;  60  kegs  Jay's  pat'd  horseslioes,  @  $10.  3.  Bo't  of  Travis 
&  Adams,  10  doz.  nail  hammers,  @  $7.50;  50  doz.  shovels,  @ 
$6.50;  8  doz.  picks,  @  $9;  6  doz.  wheelbarrows,  @  $22;  gave 
in  payment  our  note  at  30  ds.,  for  $300; — cash  for  balance. 
Cash  sales,  $102.  4.  Sold  J.  Bishop,  on  (^,  50  kegs  nails,  @ 
$5;  10  kegs  pat'd  horseshoes,  @  $12.50;  4  doz.  door  locks,  @ 
$8.75.  Pmd  cash  for  stationer>'  and  stamps,  $8.75.  5.  Bo't  of 
Henry  Diston,  2  doz.  handsaws,  @  $18;   1  crosscut-saw, 

$25;  8  doz.  butcher's  bow-saws,  @  $13.50;  paid  cash,  $50; — 
balance,  on  acc't.  6.  Sold  J.  W.  Lawrence,  50  doz.  shovels,  @ 
$7.25;  4  doz.  wheelbarrows,  @  $23;  rec'd  in  payment  an  order 
on  Henry  Parker  for  the  amt.  8.  Rec'd  of  J.  Bishop,  cash  in 
full  of  acc't.  9.  Bo't  of  J.  W.  Hubbard,  on  %  200  kegs  nails, 
@  $4.75;  2  doz.  framing  chisels,  @  $8;  4  doz.  chisel  handles, 
@  75^.  10.  Sold  H.  G.  Bourne,  4  doz.  butcher's  bow-saws,  @ 
$14;  2  doz.  nail  hammers,  @  $7.75;  3  doz.  coal  picks,  @  $9; 
1  ton  bar  iron,  $55;  rec'd  in  payment  order  on  J.  W.  Webster 
for  $100; — cash  for  balance.  11.  Paid  John  Fry,  cash  on  ^, 
$543.50.  12.  Student  has  withdrawn  $175,  for  private  use.  13. 
Sold  J.  Bishop,  2  doz.  picks,  @  $10;  1  doz.  framing  chisels, 
$9;  2  doz.  gate  hinges,  @  $8;  2  doz.  chisel  handles,  @  80^; 
1  crosscut-saw,  $30;  rec'd  in  payment  cash,  $25; — ^balance  on 
acc't.  15.  Paid  J.  W.  Hubbard,  on  c^,  cash,  $125;  order  on 
Henry  Parker  for  $300.  16.  Gave  Henry  Diston  our  note  at 
30  ds.,  to  balance  acc't.  17.  Paid  Travis  &  Adams,  cash  for 
our  note,  their  favor;  face  of  note,  $300,  less  interest  for  16 
ds.,  $2.40.  18.  Sold  J.  Brown,  8  doz.  hammers,  @  $8;  30  kegs 
pat'd  horseshoes,  @  .$15;  rec'd  his  note,  at  10  ds.,  for  $200; 
cash,  $150;— balance  on  acc't.  19.  Bo't  of  J.  T.  Hayward,  50 
gross  wardrobe  hooks,  @  $2.40;  75  gross  screws,  @  $2.25; 
3  doz.  pnming  knives,  @  $7.25;   10  doz.  handsaws,  @  $18;   3 

124 


EXERCISES  FOR  THE  STUDENT. 

doz.  inch  framing  cMsels,  @  $15;  gave  in  payment,  J.  Brown's 
note  of  the  18th  inst.,  for  $200;  our  note,  at  60  ds.,  for  $200, 
and  cash  for  the  balance.  20.  Paid  J.  W.  Hubbard,  cash  on 
acc%  $75.  21.  Bo't  of  Welland  &  Co.,  for  cash,  3  tons  of  coal, 
@  $13,  for  use  of  store.  22.  J.  Brown  having  failed  (after 
redeeming  his  note  of  the  18th  inst.,  which  we  had  given  in 
pajonent  to  J.  T.  Harward),  has  compounded  with  us  at  40  %, 
paying  cash  for  that  amt.; — balance  lost.  23.  Paid  clerks  for 
services  to  date,  $125.  24.  Sold  J.  W.  Lawrence,  on  <^,  4  doz. 
handsaws,  @  $16.50.  25.  Took  an  inventory  and  found  Mdse. 
on  hand,  $4106;   coal,  $26. 

In  this  set  use  a  four-column  Journal-Day  Book,  as  shown 
in  Model  Set  3. 

Set  6.  Los  Angeles,  Feb.  1,  1884.  P.  G.  TyrreU  and  Fred 
Cauch  commenced  business  to-day  with  resources  and  liabilities 
as  f oUows,  gains  and  losses  to  be  divided  equally :  F.  G.  Tyrrell 
invests  cash,  $1800;  Mdse.,  $2000;  a  7w(e  against  G.  W.  Martiu 
for  $200,  dated  Jan.  1,  1884,  at  90  ds.  Fred  Cauch  invests  cashj 
$4500;  and  Frank  Porter  holds  his  notey  at  4  months,  for  $500, 
dated,  Dec.  1,  1883.    The  firm  agrees  to  assume  this  note. 

Feb.  2.  Paid,  in  advance,  cash  for  rent  of  store,  $100.  De- 
posited $5000  in  Union  Bank.  3.  Bo't  of  Hamlin  &  Co.,  a 
bill  of  Mdse.,  $1800;  gave  our  note  at  30  ds.  for  $600;  a  check 
on  Union  Bank  for  $750; — balance  on  acc't.  Bo't  of  PHeld  & 
Co.,  a  bill  of  Mdse.,  $1146;  gave  in  payment  our  note  at  60 
ds.  4.  Cash  sales  to-day,  $38.  5.  Sold  L.  Andrews  on  fl|6,  20 
1^  sheeting,  @  11^;  10;^  Irish  poplin,  @  80f  Paid  cash  for 
repairing  lock  on  store,  $1.80.  Cash  sales,  $100.  6.  Sold  Mrs. 
R.  Watson,  4S  ;^  sheeting,  @  10^;  3  table-cloths,  @  $1.25;  15 
^  alpaca,  @  60^;  rec'd  cash,  $12; — balance  on  ^.  Paid  cash 
for  stationery  and  stamps,  $2.50.  Cash  sales,  $45.  8.  Sold  S. 
Brown,  on  ^,  1  lace  shawl,  $60.  Rec'd  of  Mrs.  R.  Watson, 
cash  on  ^56,  $4.  Bo't  of  Mallory  &  Co.,  a  bill  of  Mdse.,  $198; 
gave  our  note,  at  30  ds.,  for  $100; — balance  on  ^.  Cash  sales, 
$50.  Discovered  a  $10  bogus  coin  in  our  cash.  9.  Sold  S. 
Jones,  on  <^,  1  doz.  spools  thread,  75^;  4  papers  pins,  @  20^; 
15  j!^  black  lace,  @  80^.     Rec'd  of  L.  Andrews,  on  ^,  his  order 

125 


EXERCISES  FOR  THE  STUDENT. 

on  R.  Johnson  for  $10.20.  Cash  sales,  $68.  10.  Sold  A.  Buck- 
minster,  16  a^  silk,  @  $3.50;  rec'd  his  sight  draft,  on  Hamlin 
&  Co.,  for  $50,  and  cash  for  balance.  Fred  Cauch  drew  out, 
cash,  $75,  for  personal  use.  Cash  sales,  $112.  11.  Paid  cash 
for  painting  front  of  store,  $38.  Deposited  $200  in  Union 
Bank.  Sold  B.  R.  Styles,  56;^  muslin,  @  10^;  2  doz.  hair 
nets,  $4.50;  2  doz.  hdkfs.,  $3.50;  rec'd  cash,  $10; — balance  on 
acc't.  Cash  sales,  $72.  12.  Paid  cash  for  window  brush,  $2; 
one  pane  of  glass,  $2.50.  Bo't  of  Dempster  &  Co.,  a  bill  of 
Mdse.,  $395;  gave  a  check  on  Union  Bank  for  $295,  and  note, 
at  60  ds.,  for  balance.  Sold  Wm.  Goodrich,  on  <}(;,  20  ff  black 
alpaca,  @  $1;  10  ;ff  black  lace,  @  $1.25.  Cash  sales,  $89.  13. 
F.  G.  Tyrrell  drew  out  $80,  for  personal  use.  Bo't  of  S.  J. 
Klein,  on  ^,  a  bill  of  Mdse.,  $381.  Sold  C.  V.  Smith,  75  ff 
cambric,  @  15^;  \%1f  linen,  @  18^^;  2  rubber  combs  @  30^; 
rec'd  cash,  $5; — balance  on  acc't.  Cash  sales,  $24.  15.  Rec'd 
of  W.  Goodrich,  cash  on  %  $25.  Sold  C.  C.  ColUns,  on  ajc,  30 
#  black  braid  @  15?;  12  #  Scotch  plaid,  @  50?.  Sold  W. 
Barber,  on  ^,  ^  if  muslin,  @  10?;  3  window-shades,  @  $1. 
Paid  S.  J.  Klein,  on  ajc,  $100.  Cash  sales,  $110.  16.  Dis- 
counted note  held  by  Frank  Porter,  paying  for  same,  $486,  by 
check  on  Union  Bank.  Sold  J.  R,  Deaton,  28  ff  calico,  @  10?; 
38;ff  delaine,  @  15?;  rec'd  casli,  $5; — balance  on  acc't.  Bo't  of 
Hamlin  &  Co.,  by  check  on  Union  Bank,  a  bill  of  Mdse.,  $218. 
Paid  cash  for  whitewashing,  $8.  Paid  S.  J.  Klein,  on  fl|fc,  $50. 
17.  Sold  W.  Barber,  on  ^Jfc,  50  ;ff  alpaca  @  25?.  18.  Sold  W. 
Goodrich,  on  ^,  40  ;ff  delaine,  @  16?.  Paid  clerk's  salary^  by 
check  on  Union  Bank,  $60.  Cash  sales,  $40.  19.  Paid  Hamlin 
&  Co.,  cash  for  our  note  of  3d  inst.:  face  of  note,  $600;  discount 
on  same,  in  our  favor,  $4.50.  20.  Took  an  inventory  and  found 
Mdse.  on  hand,  $5388. 

Set  6.  The  partners  in  this  business  are  A.  S.  WiUiams 
and  J.  E.  Gibson.  Gains  and  losses  are  to  be  divided  in  pro- 
portion to  the  amount  invested  by  each.  Commenced  business 
Sept.  1,  1883.  A.  S.  Williams  invests  Mdse.,  $1400;  cos/i,  $500, 
and  an  account  against  M.  A.  Treat  for  $200.  J.  E.  Gibson 
invests  caah^  $2400;  a  iioie  against  James  Pearl,  dated  Aug.  1, 
1883,  at  90  ds.,  for  $400. 

;a6 


EXERCISES  FOR  THE   STUDENT. 

Sept.  2.  Deposited  $2600  in  Farmers'  Bank.  Paid,  in  ad- 
vance, cash  for  rent,  $80.  Sold  E.  P.  Heald,  on  ojc,  1  case 
American  prints,  1410;!^,  @  10^  j  2  cases  Union  gingham,  1785 
;^,  @  lljf.  Cash  sales,  $70.  3.  Sold  Geo.  Bybee,  for  cash, 
875  ]^  Scotch  gingham,  @  15^^.  Sold  Peter  Ament,  on  ^,  50 
f^  Union  gingham,  @  12^^;  25  f^  French  cassimere,  @  $1.25. 
Sold  John  Elder,  on  %  20  1^  white  flannel,  @  90^;  40  ;^  woolen 
tweeds,  @  55^.  Bo't  of  James  Nunnelly,  by  check  on  Farmers' 
Bank,  a  bill  of  Mdse.,  $900.  Cash  sales,  $88.  4.  Bo't  of  W. 
A.  Miller,  on  60  ds/  credit,  10  pieces  French  broadcloth,  200  ff 
@  $3.75.  Sold  Geo.  Bybee,  on  note  at  4  months,  a  bill  of 
Mdse.,  $150.  Rec'd  of  M.  A.  Treat,  on  <^,  $50.  Cash  sales. 
$78.  5.  Sold  John  Elder  100  ;f^  French  broadcloth,  @  $4.25; 
rec'd  his  note,  at  60  ds.,  for  $200 j — balance  on  acc't.  Paid  for 
3  tons  of  coal,  for  the  store,  by  check  on  Farmers'  Bank,  $28; 
John  Owen  has  worked  for  us  5  ds.,  @  $2.50,  and  we  have 
credited  him  for  that  amount.  Cash  sales,  $41.25.  6.  Dis- 
counted Geo.  Bybee's  note  at  Farmers'  Bank  and  rec'd  cash, 
$132.50.  Bo't  of  Chas.  Curtis,  on  our  note  at  90  ds.,  a  bdl  of 
Mdse.,  $200.  Rec'd  of  James  Pearl  a  check  on  Farmers'  Bank 
for  $200,  in  part  payment  of  his  note;  deposited  check  in  the 
bank.  Cash  sales,  $80.  8.  Sold  James  Nunnelly,  on  <56,  50  ff 
Valencia,  @  40^;  120;^  alpaca,  @  30?.  Deposited  $100  in 
Farmers'  Bank.  Paid  W.  A.  Miller  $100  on  <56,  by  check  on 
Farmers'  Bank.     Paid  cash  for  stationery,  $4.75.     Rec'd  of  E. 

P.  Heald,  to  balance  acc't,  his  note  at  60  ds.,  for  $ Gave 

W.  A.  Miller  an  order  on  John  Elder  for  $100.  9.  Burglars 
broke  into  our  store  and  stole  $150,  cash;  we  paid  a  detective 
$50  to  arrest  the  burglars,  and  we  recovered  $75.  Sold  Peter 
Ament,  on  <^,  50  f^  Merrimack  prints,  @  15?.  Cash  sales, 
$102.  10.  Accepted  W.  A.  Miller's  draft  on  us,  at  30  ds.,  for 
$200.  Sold  James  Nunnelly,  on  <^,  10  ff  broadcloth,  at  $3.80; 
20  y  Eng.  prints,  @  10?.  Discounted  our  note  of  the  6th  inst., 
favor  Chas.  Curtis,  and  gave  a  check  on  Farmers'  Bank  for 
the  proceeds,  $188.    11.   Rec'd  of  M.  A.  Treat,  cash  to  balance 

acc't.,  $ Peter  Ament  has  failed   and  we  have  lost  his 

acc't.  Paid  clerk's  salary  in  cash,  $60.  Sold  John  Owen,  on 
ff-,  4  white  shirts,  @  $175.     Cash  sales,  $60.     12.    Deposited 

127 


EXERCISES  FOR  THE  STUDENT. 

$75  in  Farmers*  Bank.  Sold  James  Nunnelly,  on  ofc,  6  white 
shirts,  @  $1.50;  8  pr.  socks,  @  25^;  1  umbrella,  $1.50.  Cash 
sales,  $50.  13.  Cash  sales,  $42.  15.  Sold  John  Owen  25  j^ 
cassimere,  @  75^.  Donated  cash,  $15,  to  free  library  fund. 
Took  an  inventory  and  found  unsold  Mdse.  on  hand,  $1860. 
Coal,  $18. 

Set  7.  G.  A.  Mills  commenced  business  Aug.  1,  1883,  witli 
resources  and  liabilities  as  follows:  Resou^ce^:  Cashj  $1775; 
Mdse.,  $250;  due  from  Frank  Porter,  on  ^,  $150;  due  from 
J.  E.  Raker,  on  ^,  $175;  a  note  against  G.  W.  Koch,  dated 
July  17,  1883,  at  2  mos.,  for  $150.  Liabilities:  G.  A.  Mills 
owes  W.  H.  Bailey  on  acc%  $107.50;  a  note,  dated  July  15, 
1883,  at  3  mos.,  favor  W.  O.  Blodget,  for  $375. 

Aug.  2.     Sold  E.  Zummalt,  1  pr.  boots,  $7.50;   1  suit  clothes, 
$42  J  rec'd  his  note,  at  60  ds.,  for  $45; — balance  on  acc't.    Rec'd 
from  H.  Everett  an  invoice  of  Mdse.  on  2  months'  credit,  $250. 
Cash  sales,  $48.25.    3.    Bo't  of  Wm.   Locke,  20  overcoats,   @ 
$20;  100  gents'  neck-ties,  @  75^;  25  doz.  hdkfs,  @  $2.20;  25  dress 
hats,  @  $3.50;   gave  him  E.  Zummalt's  note  in  part  payment; 
— ^balance  on   acc't.     Paid  cash  for  advertising,   $6.50.     Lent 
Marine  Gage,  cash,  $15.    Cash  sales,  $150.    4.  Sold  Frank  Canch, 
for  cash,  1  pr.  calf  boots,  $7;   2  prs.  shoes,  @  $5;   5  prs.  gents' 
hose,  @  75f ;   1  suit  clothes,  $42.    Bo't  of  Frank  Graham,  an 
assortment  of  gents'  fancy  goods,  $200;   gave  him  an  order  on  J. 
E.  Raker  for  $100; — ^balance  on  acc't.     Accepted  W.  H.  Bailey's 
draft  on  us  at  30  ds.'  sight,  favor  of  John  Sullivan,  for  $100. 
Cash  sales,  $175.    5.   Sold  Ben  Cory,  on  his  note  at  30  ds.,  50 
^  extra  fine  cloth,  @  $5.50.    Sold  Robt.  Adcock,  1  hat,  $6;   2 
prs.  boots,  @  $7.50;  2  neck-ties,  @  $1.50;   3  fine  white  shirts 
@  $2;  rec'd  cash,  $15; — balance  on  acc't.    Cash  sales,  $80.    6 
Rec'd  of  G.  W.  Koch,  cash  in  full  for  his  note.     Sold  W.  H 
Bailey,  on  <^,  3  doz.  buttons,  @  75^;   25;^  trimming,  @  20^ 
2  caps,  @  $1.50;    3  prs.  cuffs,  @  75^;    5  silk  hdkfs.,  @  $2 
Bo^t  of  J.  Zielan,  on  our  note  at  90  ds.,  300  prs.  pants,  @  $5 
Cash  sales,  $100.    8.   Sold  Ben  Cory,  1  suit  clothes,  $40;  2  prs 
boots,  @  $7;  9  prs.  silk  hose,  @  $1.25;   6  white  shirts,  @  $2; 
rec'd  his  note,  at  60  ds.,  for  $50; — balance  in  cash.     Rec'd  cash 

128 


EXEECISES  FOR  THE  STUDENT. 

in  full  of  acc't,  of  Robt.  Adcock.  Paid  our  note  of  July  15th, 
in  full;  face  of  uote,  $375, — interest  on  same,  in  our  favor, 
$3.75.  Rec'd  of  Marine  Gage,  cash  on  ^,  $15.  Cash  sales, 
$125.  9.  Bo't  of  Bancroft  &  Co.,  on  0/0,  stationery  for  the 
business,  $27.50.  Sold  James  Buchanan,  Ben  Cory's  note  of 
the  8th  inst.  for  $45  cash.  Paid  H.  Everett,  cash  on  ^,  $200. 
Rec'd  a  $10  counterfeit  bill  in  exchange  for  Mdse.  Cash  sales, 
$87.  10.  Paid  J.  Trimble  $400  cash,  for  a  uote  against  V. 
Domberger,  due  in  30  ds.;  face  of  the  note,  $415.  Cash  sales, 
$40.  Sold  E.  Zummalt,  1  suit  clothes,  $28.50;  1  hat,  $4.50; 
rec'd  an  order  on  S.  Grant  for  the  amt.  11.  Paid  clerk's  sal- 
ary, $40.  Sold  J.  J.  Agostine,  on  his  note  at  90  ds.,  our  as- 
sortment of  clothing,  amounting  to  $950.  Cash  sales,  $108. 
12.  Rec'd  of  V.  Domberger,  for  his  note,  cash  $412.  Bo't  hi 
J.  E.  Gibson,  on  our  note  at  6  mos.,  a  bill  of  Mdse.,  $1150. 
Took  an  inventory,  and  found  unsold  Mdse.  on  hand,  $1735. 
Stationery,  $12.50. 

Set  8.  Suisun  City,  Oct.  1,  1884.  Moses  Frank  and  Ed. 
Dinkelspiel  engage  in  a  general  merchandise  business — losses 
and  gains  to  be  equally  divided — with  resources  and  liabilities 
as  foUows:  Moses  Frank  invests  cash^  $1500;  Mdse.^  $3000. 
Ed.  Dinkelspiel  invests  cash,  $4500,  and  an  account  against 
Wm.  Kennedy  for  $300.  Ira  Parker  holds  Ed.  DinkelspiePs 
noU,  dated  Sept.  1,  1884,  at  3  mos.,  for  $300. 

Oct.  2.  Deposited,  $5500  in  Suisun  Bank.  Paid  H.  Crocker 
$7,  for  a  set  of  account  books.  Sold  Emma  Keeney,  on  ^^fc,  1 
pr.  shoes,  $3.25;  16  ff  blue  silk,  @  $1.75.  Sold  Luella  Gillespie, 
on  ^,  1  Ottoman  shawl,  $15;  1  doz.  damask  towels,  $2.50; 
20  ]^  blue  denim,  @  20^.  Loaned  Harry  Edwards,  $20.  Cash 
sales,  $61.  3.  Bo't  of  A.  T.  Stewart,  N.  Y.,  on  o/c,  2  pes.  Irish 
linen,  110  ff,  @  40^;  10  doz.  linen  napkins,  @  $1.25;  2  pes. 
gingham,  120  ff,  @  15^ ;  5  doz.  ladies'  merino  vests,  @  $8. 
Sold  Willie  Losh,  1  pr.  boots,  $3.50;  1  suit  clothes,  $16;  rec'd 
cash,  $10; — balance  on  acc't.  Paid  for  horse  and  wagon  for 
the  business,  by  check  on  Suisun  Bank,  $220.  Cash  sales,  $68.50. 
4.  Bo't  of  Henry  Beck,  the  store  in  which  we  are  doing  busi- 
ness, and  gave  check  on  Suisun  Bank,  $1500,  and  our  note,  at 

129 


EXERCISES   FOR  THE  STUDENT. 

3  mos.,  for  $500.  Sold  Calviu  Webster,  on  <^,  1  suit  clothes, 
$38.  Sold  Emma  Keeney,  on  <^,  2  prs.  linen  cuffs,  60^;  1  pr. 
gloves,  $1.75;  5;ff  ribbons,  $1.25.  Rec'd  from  W.  Keimcdy, 
on  <^,  an  order  on  H.  McEwen  for  $40.  Bo't  of  Henr>'  Pang- 
bum,  for  cash,  500  ff  prunes,  @  12J^*.  Rec'd  cash  on  o^,  of 
Luella  Gillespie,  $10.  C^ash  sales,  $41.80.  5.  Sold  Chas.  O'NeU, 
on  his  note  at  90  ds.,  a  bill  of  Mdse.,  $90.  Accepted  A.  T. 
Stewart's  draft  on  us,  at  30  ds.'  sight,  favor  of  John  Henry, 
for  $100.  Bo't  of  Jones  &  Co.,  on  our  note  at  4  mos.,  an  in- 
voice of  grfH'eries,  $800.  Deposited  $190,  in  Suisun  Bank. 
Cash  sales.  $89.  (>.  Sold  Horace  Crocker,  on  ^,  2  bbls.  flour, 
@  $6.50:  25 /^  bac<m,  @  20c*;  1  pr.  boots,  $6.50.  Rented  H. 
Hubbard  a  room  in  our  store  for  an  office,  and  rec'd  one  month's 
rent  in  advance,  $20.  Cash  sales,  $56.  8.  Sold  Willie  Losli, 
on  <^,  a  bill  of  Mdse.,  $18.50.  Paid  Mrs.  Tidy,  for  washing 
windows,  $3.50.  Sold  Horace  Crocker  a  bill  of  groceries,  $27.50; 
rec'd  cash,  $20;— balance  on  acc't.  Sold  Thos.  Short,  on  <^, 
220;^  sugar,  @  13<^.  Ed.  Dtnkelspiel  drew  out  cash,  $75,  for 
personal  use.  Cash  siUes,  $88.  9.  Moses  Frank  has  had  gro- 
ceries to  the  amount  of  $58.  Sold  Luella  Gillespie,  on  ^,  a 
bill  of  groceries,  $15.25.  Sold  J.  W.  Price,  on  ^,  1  keg  powder, 
$6.50;  1  bag  shot,  $2.75;  caps  and  wads,  $1.75.  Willie  Losh 
returned  1  bx.  crackers,  $2.25.  Discounted  Ed.  Dinkelspiel's 
note,  favor  Ira  Parker,  and  paid  $288  for  it,  by  check  on 
Suisun  Bank.  Cash  sales,  $108.  10.  Wm.  Kennedy  paid  us, 
cash  on  <5fc,  $50.  Chas.  Barnes  repaired  the  sidewalk  in  front 
of  our  store;  charged  $10,  and  took  groceries  for  that  amt. 
Sold  J.  W.  Price  a  bill  of  groceries,  $16.50;  rec'd  cash,  $10;— 
balance  on  acc't.  Thos.  Short  absconded,  and  we  have  lost  his 
acc't.  Cash  sales,  $71.50.  11.  Discounted  our  note  of  the  4th 
inst.,  and  paid  $480,  by  check  on  Suisun  Bank.  Cash  sales, 
$100.  12.  Took  an  inventory  and  found  Mdse.  in  store,  $3310; 
store,  valued  at  $2000;  horse  and  wagon,  $220. 

Set  9.  Fresno,  Nov.  1,  1884.  Student  commences  business 
with  cashj  $5000,  and  a  7wte  against  W.  J.  Black,  dated  Aug. 
1,  1884,  at  90  ds.,  for  $350. 

Deposited  in  City  Bank,  $4700.        ^ 

130 


EXERCISES  FOR  THE  STUDENT. 

The  usual  way  is  to  consider  the  money  in  the  bank  as  cash  on  hancL 
and  to  keep  the  account  with  the  bank  by  means  of  the  Bank  Book  ana 
Check  Book.  Some  prefer,  however,  to  keep  an  account  with  the  bank  in 
their  Ledger,  in  the  same  manner  as  accounts  with  persons,  debiting  the 
bank  for  deposits  made,  and  crediting  it  for  checks  drawn  on  the  same. 

Bo't  of  Cook  &  Co.,  of  N.  Y.,  an  invoice  of  groceries,  $4000; 
gave  our  check  on  City  Bank  for  $2000  j — ^balance  on  acc't. 

2.  Rented  a  store  of  H.  Witherspoon  at  $100  per  month,  and 
paid,  cash,  $25  in  advance. 

Bo't  of  Geo.  Duncan,  on  onr  note  at  3  mos.,  2J  tons  dried 
prunes,  @  $220;  2  tons  diied  apples,  @  $100. 

Shipped  by  S.  P.  R.  R.,  and  consigned  to  Adams  &  Co.,  San 

Francisco,  to  be  sold  on  our  account  and  risk,  2  tons  dried 

prunes,  @  $220;  IJ  tons  dried  apples,  @  $100; — paid  cash  for 

drayage  and  freight,  $15. 

Goods  sent  abroad,  to  be  sold  for  your  account,  must  not  be  debited  to 
the  consignee,  but  must  liave  a  specifio  title,  under  which  to  keep  an  ac- 
count of  them,  just  as  goods  at  home  have  the  title  of  "  Mdse."  The  title 
usually  given  is  "  Shipment,"  or  "  Adventure,"  to  such  a  place  or  such  a 
party.     You  may  call  this  "Shipment  to  San  Francisco,  No.  1." 

Cash  sales,  $125. 

3.  Sold  Eva  Hasty,  on  ^,  100  ;ff  dried  prunes,  @  15^;  120;^ 
sugar  @  13^. 

Sold  J.  W.  Sullivan  5  bbls.  salt,  9S0  ;f^,  @  2<';  200  ;f^  salt 
pork,  @  18^;  75;^  cheese,  @  20^;  rec'd,  cash,  $25; — balance 
on  acc't. 

Accepted  Cook  &  Co.^s  draft  on  us,  at  30  ds.'  sight,  favor  J. 
W.  Price,  for  $500. 

Paid  $180,  for  a  horse  and  wagon  for  the  business,  by  check 
on  City  Bank. 

Cash  sales,  $160. 

4.  Deposited  $200  in  City  Bank. 

Sold  Marine  Gage,  on  his  note  at  30  ds.,  a  bill  of  Mdse., 
$160. 

Paid  for  advertising,  cash,  $8.50. 

Bo't  of  H.  F.  Clark,  500  C.  of  wheat,  @  $1.70;  gave  in  part 
payment,  Marine  Gage's  note  at  $150;  our  note  for  $300,  at 
90  ds.; — balance  on  acc't. 

In  this  transaction  we  have  discounted  Marine  Gage's  note, 

Rec'd  of  Eva  Hasty,  on  ^,  10  ;^  egg,  @  35^. 

131 


EXERCISES  FOR  THE  STUDENT. 

Sold  A.  M.  Gray,  on  <5fe,  150  ilK  rice,  @  6^j  50  C.  wheat,  @ 
$1.85. 
Cash  sales,  $117. 

5.  Rec*d  an  Account  Sales  from  Adams  &  Co.,  of  the  dried 
fruit,  sent  them  on  the  2d  inst.j  net  proceeds,  $625.  Adams 
St  Co.  sent  a  sight  draft,  on  Bancroft  &  Co.,  for  $500; — balance 
on  acc^ 

The  debits  in  this  transaction  are  Cash  aud  Adams  &  Co.;  credit  Ship* 
ment  to  San  Francisco,  No.  1. 

Rec'd  from  Frank  &  Sons,  Suisun  City,  500  sks.  potatoes, 
@  $1  per  sk.,  to  be  sold  on  commission  at  5%.  They  to  pay 
freight,  drayage,  et<5. 

We  paid  drayage  on  this  shipment,  $4.50. 

In  this  transaction  make  a  memorandum,  stating  that  the  goods  were  re-> 
eeived,  but  make  no  Journal  entry.  Afterwards  debit  Fra^  &  Sons  to* 
mU  eoets  to  ns,  and  credit  them  for  sales. 

Cash  sales,  $210. 

6.  Sold  100  sks.  of  Frank  &  Son's  potatoes  for  cash,  @  $1.40 
per  sk. 

Discounted  our  note,  favor  Geo.  Duncan,  and  paid  for  same 
by  check  on  City  Bank,  $742. 

Deposited  the  sight  draft  for  $500,  rec'd  on  the  5th  inst.,  in 
City  Bank. 

Sold  the  balance  of  Frank  &  Sons'  potatoes,  400  sks.,  to 
John  Cary,  on  his  note,  at  60  ds.,  for  $560. 

Rendered  an  Account  Sales  to  Frank  &  Sons;  our  commis- 
flon,  which  we  have  deducted  in  cash,  is  $35;  drayage,  $4.50; 
total,  $39.50.  Sent  Frank  &  Sons  our  check,  on  City  Bank,  for 
$100.50,  and  John  Cary's  note  for  $560. 

Cash  sales,  $89. 

8.   Sold  Greo.  Duncan,  on  <}fc,  a  bill  of  groceries,  $87.50. 

Sold  Peter  Crank,  10  bbls.  flour,  @  $6.50;  5  sks.  potatoes, 
@  $1.40;  rec'd  cash,  $30; — ^balance  on  acc't. 

Deposited  $250  in  City  Bank. 

W.  J.  Black  paid,  cash,  for  his  note  and  interest  on  same: 
face  of  note,  $350;  interest,  $7.50. 

Bo't  of  Chas.  Owen,  by  check  on  City  Bank,  an  invoice  of 
groceries,  $500. 

132 


EXERCISES  FOR  THE   STUDENT. 

Student  withdrew,  for  private  use,  by  check  on  City  Bank,  $150. 
Peter  Crank  died  insolvent,  and  we  have  lost  his  account. 
Sold  H.  F.  Clark,  on  %  a  biU  of  Mdse.,  $70. 
Sold  Eva  Hasty,  on  <j6,  a  bill  of  groceries,  $18.25. 
City  Bank  failed,  and  we  rec'd,  cash,  40  %  of  amt.  on  deposit. 
Took  an  inventory  and  found  Mdse.  on  hand,  $4460;   horse 
and  wagon,  $175. 

Set  10.  Fresno,  Nov.  15,  1884.  Student  has  this  day  asso- 
ciated with  him  in  a  general  merchandise  business,  Fred  Childs, 
who  is  to  invest,  in  cash,  an  amount  equal  to  Students  net  in- 
vestment, as  determined  at  close  of  preceding  set.  Gains  and 
losses  to  be  shared  equally. 

Deposited  $4000  in  Bank  of  Fresno. 

Paid  Cook  &  Co.,  $500,  by  check  on  Bank  of  Fresno. 

Rec'd  of  J.  W.  SuUivan,  $30  on  Qjc, 

Accepted  H.  F.  Clark's  draft  on  us,  30  ds.'  sight,  favor  J. 
B.  Atchinson,  for  $200. 

Cash  sales,  $78. 

16.  Sold  A.  M.  Gray,  on  ^jfc,  500;J^  ground  barley,  @  $1.80 
per  C. 

Sold  Eva  Hasty,  on  ^,  1  keg  syrup,  $3.75  j  1  case  kerosene, 
$3.50. 

Bo't  of  Cook  &  Co.,  by  check  on  Bank  of  Fresno,  a  bill  of 
Mdse.,  $1175. 

Rec'd  from  Geo.  S.  Wells,  San  Jose,  8  tons  of  flour,  @  $70, 
to  be  sold  on  commission  at  4J%. 

Rec'd  from  Geo.  Duncan,  on  ^jfc,  an  order  on  Ira  Parker  for 
$40. 

Cash  sales,  $116. 

17.  Sold  Florence  Childs,  on  of,,  10  ff  silk  velvet,  @  $1.50,- 
8  ff  cashmere,  @  75^;   6  prs.  hose,  @  50^. 

Sold  Thos.  Hardie,  on  ^,  a  bill  of  groceries,  $28.75. 

Sold  John  Adams,  fo/  cash,  600  ;f^  Wells's  flour,  @  $3.75 
per  C. 

Shipped  to  Farmers'  Union,  San  Jose,  to  be  sold  on  our  ac- 
count, 4^  tons  dried  prunes,  @  $200. 

Sold  J.  W.  Sullivan,  180  ;ff  sugar,  @  14^  j  50;^  rice,  @  6^; 

133 


EXEKC18ES  FOR  THE  STUDENT. 

600  ;K  flour,  @  $3.80  per  C;  rec'd  cash,  $20;— balance  on 
acc^t. 

Deposited  $160  in  Bank  of  Fresno 

Sold  Loyd  Childs,  on  his  note  @  60  ds.,  1}  tons  of  prunes, 
@  $240. 

C^ash  sales,  $68. 

18.  Sold,  for  cash,  li  tons  Wells's  flour,  @  $80. 
Paid  cadi  for  a  set  of  acc't  books,  $9.50. 

Sold  Florence  Childs,  on  <^,  1  cloak,  $12;   1  pr.  shoes,  $3.25. 
Sold  Thos.  Hardie,  on  ^,  800  ;^  wheat,  @  $1.65  per  C. 
Cash  sales,  $160. 

19.  Deposited  $250  in  Bank  of  Fresno. 
Rec'd,  cash  on  ^,  of  Florence  Childs,  $15. 

Loyd  Childs  has  returned  500  ;^  dried  prunes,  @  12^. 
Paid  cash  for  stationery,  $3.75. 

Bo't  of  John  Adams,  on  our  note  at  3  mos.,  a  bill  of  Mdse.,  $240. 
Cash  sales,  $108. 

20.  Paid  for  advertising,  by  check  on  Bank  of  Fresno,  $10.50. 
Sold  J.  F.  Ogden,  on  ^,  50  ;^  cheese,  @  20^;   25;^  codfish, 

@  8^;   50 /^  dried  peaches,  @  16?. 

Sold  the  remainder  of  Wells's  flour,  for  $500,  cash. 

Sold  Thos.  Hardie  IJ  tons  dried  prunes,  $340;  rec'd  check 
on  Grangers*  Bank  for  $140;  note  at  30  ds.  for  $160; — ^balance 
on  acc't. 

Sold  Geo.  Duncan,  on  ^jfc,  4  boxes  soap,  @  $1.25;  1  keg 
syrup,  $3.75. 

Traded  horses,  and  gave  cash  $25,  to  boot.  Deposited  $600 
in  Bank  of  Fresno. 

Rendered  an  Account  Sales  to  Geo.  S.  Wells  for  the  flour 
shipped  us  on  the  16th  inst.  Our  commission  is  $28.90;  sent 
Wells  our  check,  on  Bank  of  Fresno,  for  the  balance. 

Cash  sales,  $78. 

21.  Rec'd  of  A.  M.  Gray  a  draft  on  the  Commercial  Bank, 
San  Francisco,  for  balance  due  us  on  acc't. 

Gave  Cook  &  Co.  an  order  on  Thos.  Hardie  for  $75. 

Donated  $20  to  the  Ladies'  Aid  Society. 

Paid  clerk's  salary,  $75. 

Rec'd  $75  from  Loyd  Childs,  to  apply  to  his  note  of  17th  inst. 

134 


EXERCISES  FOR  THE  STUDENT. 

Sold  J.  F.  Ogden,  on  ojc^  120  ;K  mess  pork,  @  20^j  5  ;K  vin- 
egar, @  40^. 

Bo't  of  Moss  &  Co.,  a  bill  of  Mdse.,  $1200;  gave  our  check 
on  Bank  of  Fresno  for  $500; — balance  on  acc't. 

Cash  sales,  $116 

22.  Sold  J.  F.  Perez  a  bill  of  Mdse.,  $85;  rec'd  cash,  $50;— 
balance  on  acc't. 

Sold  Geo.  Duncan,  on  <^,  5  bbls.  flour,  @  $7.25. 

Sold  Florence  Childs,  on  %  1  shawl,  $9;   1  pr.  shoes,  $3.25. 

Cash  sales,  $68.50. 

23.  Sold  Thos.  Hardie,  on  ^,  a  bill  of  Mdse.,  $48. 
Deposited  $125  in  Bank  of  Fresno. 

Gave  Moss  &  Co.,  on  ojc,  Thos.  Hardie's  note  of  the  20th  inst. 

Rec'd  an  Account  Sales  from  Farmers'  Union,  of  prunes 
shipped  them  on  17th  inst.  Our  net  proceeds  are  $1065;  we 
rec'd  a  draft  on  Hibemia  Bank,  San  Francisco,  for  that  amt. 
Deposited  this  draft  in  Bank  of  Fresno. 

Cash  sales,  $78. 

24.  Sold  J.  F.  Perez,  on  <^,  1  pr.  boots,  $7.50;  4  white  shirts, 
@  $1.75. 

Student  drew  out  cash  for  private  use,  $120. 
Fred  Childs  has  taken  groceries  to  date,  $67.50. 
Cash  sales,  $100. 

25.  Rec'd  from  J.  F.  Perez,  on  <56,  24  ;K  eggs,  @  35^. 
Sold  J.  F.  Ogden,  on  ojc,  28  C.  of  wheat,  @  $1.80. 

Took  an  inventory  and  found  Mdse.  on  hand,  $4130;  horse 
and  wagon,  $190. 


MODEL  SET  IV. 


This  set  illustrates  a  method  of  posting  from  three  books  of 
original  entry — the  Journal-Day  Book,  Cash  Book,  and  Sales 
Book.  The  Bill  Book,  Check  Book,  and  Ledger  complete  the 
books  used  in  the  set. 

By  the  addition  of  an  extra  column,  headed  "  Mdse.  Dr.,"  in 
which  only  purchases  of  merchandise  are  entered,  the  Joumal- 

135 


MODEL  SET  IV. 

Day  Book  serves  also  as  Invoice  Book,  in  a  condensed  form. 
The  bills  of  purchases  are  posted  in  a  blank  book,  as  in  pre- 
ceeding  sets. 

The  items  entered  in  the  columns  headed  "Sunds.  Dr./^  and 
"Siinds.  Cr./'  of  the  Journal-Day  Book,  are  posted,  aS  from  an 
ordinar}'  Journal,  separately  to  the  Ledger.  The  totals  of 
Mdse.  column  are  brought  forward  from  page  to  pagej  the 
total  footing — covering  either  a  day,  week,  or  month,  as  may 
best  accord  with  the  business — being  finally  carried  to  the  debit 
of  Mdse.  account  in  the  Ledger. 

The  Sales  Book  contains  sales  of  Mdse.  only.  The  net  amount 
of  each  sale  is  carried  to  the  right-hand  column,  and  the  foot- 
ing of  this  column  is  brought  forwjird  from  page  to  page,  un- 
til the  end  of  the  day,  week,  or  month,  as  desired  j  the  total 
footing  being  then  posted  to  the  credit  of  Mdse.  account.  The 
debits,  in  the  Sales  Book,  are  separately  posted,  in  the  usual 
way. 

The  Check  Book  contains  a  record  of  all  transactions  with 
the  bank.  The  bank  is  debited  for  deposits,  by  entering  tho 
amounts,  with  the  proper  explanation,  in  the  Check  Book,  and 
credited  for  the  amounts  withdrawn  by  check.  No  account  is 
kept  with  the  bank  in  the  Ledger;  the  amount  in  bank  being 
treated  as  cash  on  hand. 

The  Cash  Book  contains  a  record  of  all  cash  transactions. 
Special  columns  are  used  in  order  to  facilitate  the  work  of 
posting.  The  footings  of  the  special  columns  are  posted  daily, 
weekly,  or  monthly.  No  cash  account  is  kept  in  the  Ledger. 
The  sum  of  the  debit  columns,  "Sunds.''  and  "Mdse.,"  shows 
the  amount  of  cash  received;  the  sum  of  the  credit  columns, 
"Sunds."  and  "Expense,"  the  amount  of  cash  paid  out.  The 
difference  between  these  sums  is  equal  to  the  amount  of  cash 
in  the  safe  or  drawer.  Cash  in  drawer,  plus  amount  in  bank, 
shows  the  total  of  cash  on  hand. 

Oakland,  March  1,  1884.  Student  commenced  business  with 
cash,  $10000,  and  a  7iote  against  Geo.  Oberholtzer,  dated  Feb.  1, 
^884,  at  60  ds.,  for  $500.     Student  owes  F.  M.  Righter,  on  %  $200. 

Deposited  in  City  Bank,  cash,  $9500. 

136 


.  UNIVERSITY 

MODEL  SET  lY. 

2.  Bo't  of  Jayne  &  Son,  ou  «!6,  100  bxs.  raisins,  @  $3.25, 
40  doz.  2  if  cove  oysters,  @  $5;  100  doz.  '^ff  canned  peaches^. 
@  $5j   300  bbls.  floui-  @  $8. 

Sold  S.  Thompson,  on  «|6,  20  doz.  "Iff  cove  oysters,  @  $6; 
30  bxs.  raisins,  @  $4.25;   10  bbls.  flour,  @  $9. 
Cash  sales,  $38. 

3.  Sold  Jas.  CampbeU,  for  cash,  20  bbls.  flour,  @  $9j  20 
bxs.  raisins,  @  $5;   10  doz.  Iff  cove  oysters,  @  $5.50. 

Sold  Ira  More,  on  his  note  at  90  ds.,  10  bxs.  raisins,  @  $5j 
5  doz.  Ilf  cove  oysters,  @  $6j  20  doz.  Zif  canned  peaches, 
@  $G;   50  bbls.  flour,  @  $9. 

Bo't  of  Wm.  Smith,  on  our  note  at  30  ds.,  150  bbls.  Gikoy 
flour,  @  $7  J  150  doz.  1  ff  cove  oysters,  %  $2.50  j  3,000  ff  cheese, 
%  10^;  100  bbls.  apples,  @  $3j  20  sks.  Rio  coffee,  3,000  ff,  %  15^. 

Paid  for  2  tons  coal  for  the  store,  cash,  $24. 

Cash  sales,  $40. 

4.  Bo't  of  Joseph  Baker,  by  check  on  City  Bank,  10  hhds. 
N.  O.  sugar,  1,200  ;Jf,  %  10<Z!;  12  bbls.  mess  beef,  @  $20;  12 
bbls.  prime  pork,  @  $15. 

Rec'd  of  S.  Thompson,  on  f^,  $200. 

Deposited  $500  in  City  Bank. 

Bo't  of  Geo.  Underwood,  a  horse  and  wagon  for  the  store; 
paid,  check  on  City  Bank,  $200. 

Sold  J.  L.  Mosher,  on  %  10  bbls.  prime  pork,  @  $17;  10 
bbls.  mess  beef,  @  $21;  5  hhds.  N.  O.  sugar,  6,000;^,  @  11^; 
10  sks.  Rio  coffee,  1,000  ;K,  %  14^;   50  bbls.  apples,  @  $4. 

Exchanged  notes  with  Geo.  Mai-tin,  for  our  mutual  accom- 
modation, each  note  drawn  at  30  ds.,  for  $600. 

Discounted  Geo.  Martin's  note  at  London  Bank,  and  received, 
cash,  $590. 

5.  Accepted  Jayne  &  Son's  draft  on  us,  at  30  ds.'  sight,  favor 
Geo.  P.  Anderson,  for  $1200. 

Sold  Ira  More,  20  bbls.  Gilroy  flour,  @  $8;  100  bbls.  family 
flour,  @  $9;  20  doz.  1  ff  cove  oysters,  %  $2.75;  10  bbls.  ap- 
pies,  @  $4;  rec'd,  cash,  $200,  his  note  at  60  ds.  for  $500; — 
balance  on  (^. 

Bo't  of  H.  F.  Clark,  50  bbls.  white  fish,  @  $9;  50  bbls.  No. 
1  ma<}kerel,  @  $10;  40  bbls.  S.  I.  sugar,  8,000  ;f^.  @  10^;  gave 

137 


MODEL  SET  IV. 

in  payment  Ira  Mere's  note  for  $490  (face  of  note,  $500)  ^  check 
on  Cit}'  Bank  for  $900; — ^balance  on  acc't. 

Sold  John  Utter,  for  cash,  25  bbls.  white  fish,  @  $10;  20 
bbls.  S.  I.  sugar,  4,000  If,  @  12^. 

Deposited  in  City  Bank,  cash,  $600. 

6.  Sold  Agnes  Parsons,  on  ^jfc,  1,500  i^  cheese,  @  15^. 

Paid  for  repairing  wagon,  cash,  $12. 

Rec'd  from  J.  L.  Mosher,  on  <jfc,  a  sight  draft  on  Ames  & 
Co.,  for  $400. 

Gave  F.  M.  Righter  an  order,  on  Agnes  Parsons,  for  $150. 

Sold  John  Utter,  on  <)fe,  10  bbls.  mess  beef,  @  $21;  10  bbls. 
prime  pork,  @  $15. 

8.  Sold  Wynn  Reeves,  on  %  20  bbls.  flour,  @  $8.50. 

Sold  Wm.  Kinloch,  for  cash,  20  cases  kerosene,  @  $2.50;  4 
doz.  parlor  lamps,  @  $15. 

Deposited  sight  draft,  rec*d  on  6th  inst.,  in  City  Bank. 

Discounted  our  acceptance  of  the  5th  inst.,  favor  Geo.  P. 
Anderson,  and  paid,  cash,  $1185. 

9.  Took  an  inventory  and  found  Mdse.  on  hand,  $2900; 
horse  and  wagon,  $190. 


8bt  4.] 


CHECK  BOOK  STUBS. 


f 


•I: 


\ 


rs'?? 


S  S  s 

V 


March 
No. 
Date, 
To 
For 
Amt 

March 
No. 
Date, 
To 
For 
Amt       . 

4.  Depouted 

2. 

Martsh  4. 

Geo.   Underwood. 

Honie  and  wagon. 

1,  1884,  Deposited.  . 
1. 

March  4. 
Joseph  Baker. 
Mdse. 

il 


138 


Set  4.] 


JOURNAL-DAY  BOOK. 

OAKLAND,  March  i,  1884^ 


L.P. 

T 

141 
141 

141 
141 


141 
1431 


141 
143 


141 

V 

142 

V 

141 
1421 


143 
142 


141 
142 
141 
141 

V 


141 
1421 


Cash 

Bills  Receivable 

Student 

For  Investment. 

Student 

F.  M.  Righter 

Due  on  <^. 

2. 

Mdse 

Jayne  &  Son  

Per  Invoice  Book. 
3. 

Mdse 

Bills  Payable 

Bo't  by  note  at  30  ds.,  as  per  I.  B. 
4. 

Mdse 

City  Bank 

Bo't  by  check,  as  per  I.  B. 

Expense 

City  Bank 

Paid  for  horse  and  wagon,  by  check. 

Bills  Receivable 

Bills  Payable 

Exchgd.  notes  for  mutual  accommod'n. 
5. 
Jayne  &  Son 

Bills  Payable 

Accepted  draft  on  us,  favor  Geo.   P. 
Anderson,  30  ds. 

Mdse \\ 

Discount  and  Interest 

H.  F.  Clark 

Bills  Receivable 

City  Bank 

Bo't,  as  per  I.  B.,  and  gave  Ira  More's 
note  for  $490  (face  of  note  $500); 
check  on  bank  ; — balance  on  ^. 

6. 

F.  M.  Righter 

Agnes  Parsons 

Gave  an  order  on  A.  Parsons. 


139 


Md6k.  Dr. 


3425 


2475 


C40 


1760 


8190 


SUNDS.  DB. 


10000 
500 


200 


200 


600 


1200 


10 


150 


12860 


SUNDS.  Gb. 


Srr4.] 


SALES  BOOK. 

OAKLAND,  March  Jf,  I884. 


L.P. 


142 


141 


142  J 


141 
141 


142 


143 


143 


S.  Thompsok,  Smi  Jom. 

20  dot.  2  «  Cove  Oysters,  @  |6.     . .  .$120. 

30 bxs.  Busins,  4.25...  127.50 

10  bbU.  Flour,  9.     . . .     90. 
3. 
Ca.su,  Jas.  Caxfbkll. 

20  bbls.  Flour.  ^  |0.     . 

20  bxs.  Rjuains  5.     . 

10  doB.  2  /^  Cove  Oysters,  5.50. 


$180. 
.  100. 
.     65. 


Bills  Rktrtvablb,  Ira  Mokb,  Note,  90  ds. 

10  bx&  Kaiains,  @  $5.     . .  .$  5a 

5  doz.  2i/i  Cove  Oysters,  6.     ...     30. 

20  dos.  3  ;<r  Csnned  Pesohes,       6.     ...   120. 
50  bbls.  Flour.  9.     ...  450. 


4. 


<i$17. 
21. 


.11. 
.14. 


L.   MOSHKR, 

10  bbls.  Prime  Pork. 

10     **     Mean  H««f. 

5  lihda.  N.  O.  Sugar.  600  ff, 

10  aks.  Rio  Coffee.  1000  fi, 

50  bbla.  Apples, 

5. 

Ira  Mors 

Cash 

Bills  Rsckivablk. 

20  bhls,  Gilroy  Flour, 

100  bbls.  Family  Flour 

20  doz.  1  f/i  Cove  Oysters, 

10  bhls.  Apples. 

Rec'd  note,  at  60  da..  $500 ;  Cash,  $200 ; 

Cash,  Jom.n  Uttbr. 

25  bbls  White  Fiah,  @  $10.     . 

20    •'    S.  I.  Sugar,  4000  ;^,  .12. 

6. 

Agnes  Parsons. 

1500  f/i  Prunes,  @  16# 

/* 
JoHX  Utter, 

10  bbls.  Mess  Beef. 

10    ♦•     Prime  Pork. 


OakUnd. 
$170. 
.  210. 


140. 
200. 


@$8.  .. 
9.  .. 
2.75.. 
4.     .. 


1160. 

900. 

55. 

40. 


bal.  on  ojc- 


.$250. 
.  480. 


Sacramento. 
@$21.     ...$210. 
15.     ...    UiO. 


Wtnh  Rbbvbs, 

20  bbls.  Flour,  @  $8.50. 
// 
Cash,  Wm.  Kixloch. 

20  Cases  Kerosene. 

40  doz.  Parlor  Lamps, 


Suisun  City. 


$2.50. 
15.     . 


140 


$  50. 

,     60. 


33750 


660 


dSSQ 


455 

500 


225 


360 


170 


407750 


Total*. 


33750 


335 


650 


1380 


200 


730 


110 


1156 

730 
225 
360 

ro 

110 


1375 


545250 


Set  4.] 


LEDGEE. 
STUDENT. 


1884 
Mar 


F.  M.  Righter... 
Balance i 


139 
143 


200 

1048D50 
50 


10689 


18841 
Mar 


Sundries 

Loss  and  Gain l 


139,10500 
143      18950 


1068950 


BILLS  RECEIVABLE. 


1884 
Mar 


Student 

Mdse 

Bills  Payable. 
Mdse 


S.  B 


139 
140 
139 
140 


500 
650 
600 
500 


2250 


1884] 
IMar 


Cash  . . . . 
Sundries . 
Balance, 


B144 
..  139 
,Ll43 


600 

500 

1150 


2250 


J^.  M.  RIGHTER. 


1884J 
Mar 


Agnes  Parsons  . . . 
Balance l 


139 
143 


150 

60 

200 


1884 
Mar 


Student . 


139 


200 


200 


MERCHANDISE. 


18841 
Mar 


Jayne  &  Son. . . 
Bills  Payable. . 
City  Bank  . . . . 

Sundries 

9  Loss  and  Oain. 


1884 

139 

3425 

Mar  9 

lt9 

2475 

'  (( 

9 

139 

540 

** 

9 

139 

1750 

143 

S40 

50 

8430 

50 

Cash  . . . . 
Sundries, 
Balance. . 


144 
140 
143 


1453 

407750 

2900 


843050 


H.  F.   CLARK. 


1884 
Mar 


9  Balance. l143 


360 


1884 
[Mar 


Sundries . 


139 


{60| 


IRA  MORE. 


1884 
Mar 


5  Mdse s.  Bl40 


455 


1884 
Mari 


Balance l143 


l[i43 


141 


455 


Sr  4.] 


LEDGER. 
BILLS  PAYABLE. 


1884 
Mar 


Cub c.Bl4£ 


S  Baianee, 


Li4a 


1200 
S073 


4275 


1884 
Mar 


3  MdM 

4  Bills  Recetvable.  .. 

5  Jayne  k  Son 


139 
139 
139 


2475 

GOO 

1200 


4276 


EXPENSE. 


200 
96 


236 


1884; 
Mar  9 
9 


Balcutcf L 

Lo»$  and  Oain 


143 


Ll43 


190 
46 


236 


DISCOUNT  AND  INTEREST, 


1884 
Mar 


4.  Cash ... 

5,  SnndriM . 


Bil45 
139 


20 


1884 
Mar 


Caah c. 

LoM  and  Oain ... 


144 
l|143 


'^ 


S.   THOMPSON. 


J.  L.   MOSHER, 


1884 
Mar 


4  Mdse 


140 

1380 

1884 

Mar 

« 

1380 

Cash c.  B 

Balance l 


144 
143 


400 

980 


1380 


AGNES  PARSONS. 


1884 
Mar 


6  Mdae .s.  b 


i 

1884'    1 

140 

225 

Mar 

6 

(t 

9 

F.  M.  Righter 

Balance , 


139 


L143 


— ^ 
225! 


142 


Set.  4.] 


LEDaER. 
JAYIfE  &  SOK 


1884 
Mar 


Bills  Payable 
Balance 


139 
143 


1200 


3425 


!l884 
Mar 


2  Mdse. 


139 


3425 


3425 


JOSy  UTTER. 


1884 
Mar 


6|  Mdse 


s.  B^140 


360 


11884 
Mai\  ^  Ba 


lance L:143      S6C 


WYNN  REEVES. 


1884 
Mar 


8  Mdse. 


b|i4^ 


11884 
1701    IMar 


9\  Balance . 


l[i43[|    J7(\ 


LOSS  AND   GAIN. 


1884J 
Mar   ^ 


Expense 

Disct.  and  Int . 
Student 


142 
142 
141 


46 

6 

18950 


240501 


1884' 
Mar  9 


Mdse. 


141 


24050 


24050 


BALANCE. 


1884 
Mar 


Bills  Receivable 

Mdse.  luvt L 

Expense,  Invt 
S.  Thompson. 

J.  L.  Mosher l 

Agnes  Parsons 

John  Utter L 

Ira  More l 

Wynn  Reeves l 

Cash c.  B 

City  Bank.  ...CK 


L141 


141, 
142 

142| 
142' 


Ll4! 


143 

141 
143 
145 
138 


1150 
2900 
190 
137 
980 
75 
360 
455 
170 
422 


50 


1619950 


1884 
Mar 


9  F.  M.  Righter....L|141 

9  Jayne  k  Son l  143, 

91  Bills  Payable l142; 

H.  F.  Clark l  141 

91  Student il41 


50 

2225 

3075 

360 

1048950 


1619950 


14S 


BILL 
BILLS 


[Set 


Mo. 

When 

DaAMTUl 

OB 

EMDOBaU. 

Dkawu 

oa 
Makkb. 

Ix  Whocb  Fatob. 

Date  of 
Note. 

Tlmefo 
Bun. 

1 
2 
3 

4 

1884 
Mar 

<< 

1 
3 
4 

j  Student 

Student 

1  Student 

1  Student 

G.  Oberholtrer. 
Ira  More. 
Geo.  Martin. 
Ira  More. 

Student 
Student. 
Student. 
Student 

1884 
Feb. 
Mar 

1" 

1   60  da. 

3  90  da. 

4  30  da. 
6  60  da. 

BILLS 


[Set 


No. 

Wb«n 
Im«d. 

Dbawbb 

OB 

Emdobsbb. 

Dbawbs 

OB 

Kakbb. 

In  Wbobb  Fatob. 

IMaof 
Not«. 

Time  to 
Rod. 

1 
2 
3 

1884 
Mar 

i< 
•« 

3 
4 

5 

Wm.  Smith. 
Geo.  Martin. 
Jayne  k  Son. 

Student 
Student. 
Student 

Wm.  Smith. 
Geo.  Martin. 
G.  P.  Anderaon. 

1884 

Mar 

•( 

3 
5 

30  da. 
30  da. 
30  da. 

CASH 


Dr. 

[Snr 

Datb. 

L.P. 

CASH  TO  SUND8. 

SUNDS. 

Mmb. 

Bills 
Bco. 

0»CT. 

1884 
Mar 

2 
3 
4 
4 
6 
8 
9 
9 

13S 

142 
141 
142 
142 
140 
141 

Student  Amt.  Invested 

10000 

200 
590 
400 

1453 

38 
40 

1375 
1453 

600 

15 

Mdae.,  Dmwer  Sales 

Mdae.,  Drawer  Sales 

Billa  Bjtc ,  Diactd.  G.  Martin'a  note. 

J.  L.  Moeher,  Sight  draft  

Diact  and  Int ,  Draft  favor  G.  P.  A. 
Mdae.,  Salea,  per  S.  B 

Mdse 

Balance 

12643 

Mat 

10 

^ 

422 

144 


4.3 


BOOK 
RECEIVABLE. 


WHEN  DUE. 

"I 

When  aud  How 

Where  Payable. 

Tr. 

a 

1 

t 

1 
3 

^ 

S 

i 

1 

1 

1 

o 

is, 

1 

Amt. 

Diiiposed  of. 

Oakland. 
Oakland. 
Oakland. 
Oakland. 

1884 
1884 
1884 
1884 

4 

1 

500 
650 
600 
500 

Diactd.,  Mar.  4,  '84. 
Di8ctd.,Mar.  6,  '84. 

4.] 


PAYABLE. 


WHEN  DUE. 

1 

When  and  Bow 

Where  Payable. 

Yr. 

I 

1 

^ 

S 

1 

< 

ST 

« 

a 
a 

-< 

i 

i 

1 

1 

Ami. 

DiBpoMdof. 

Oakland. 
Oakland. 
Oakland. 

1884 
1884 
1884 

2 
3 
4 

. 

2475 

600 

1200 

Paid,  Mar.  9,  '84. 

BOOK. 


4.] 

Cr. 

Datk. 

L.P. 

8UND8.   TO  CASH. 

SUKM. 

Ex- 

PXN8E. 

Bills 
Pay. 

DWCT. 

1884 
Mar 

1 
3 
4 
4 

5 
6 
8 
8 
9 
9 

138 
142 
138 
142 

:s 

138 
142 
142 
143 

City  Bank,  Deposited ck.  b 

Expense,  2  tons  Coal 

9500 

500 

600 

400 

1185 

36 

4^2 

24 

12 
~36 

1200 

10 

•• 

City  Bank,  Deposited ck.  b 

Disct.  and  Int.,  G.  Martin's  note. . . 

City  Bank,  Deposited ck.  b 

Expense,  Repairing  Wagon 

City  Bank,  Depostd.  sight  dft.  ck.  b 
Bills  Pay. ,  Disctd.  draft  of  5th  inst. 
Kxpense 

.. 

Balance 

12643 

145 


MODEL  SET  IV. 


EXERCISES  FOR  THE   STUDENT, 

Set  11.  Portland,  Aug.  1,  1884.  Student  commenced  busi- 
ness with  cash,  $4000,  and  a  note  against  L.  Washburn,  for 
$350,  on  interest  at  one  per  cent,  per  month,  dated  July  6, 
1884,  at  90  ds. 

2.  Deposited  $3500  in  Bank  of  Oregon.  Paid  cash  for  a  set 
of  acc't  books,  $16. 

Bo't  of  Reed  &  Co.,  by  check  on  Bank  of  Oregon,  an  invoice 
of  Mdse.,  amounting  to  $2800. 

Sold  J.  W.  StirUng,  on  fl|6,  5  bbls.  white  fish,  @  $8;  10  bbls. 
mess  pork,  @  $18. 

Cash  sales,  $75. 

3.  Bo't  of  W.  H.  Sumner,  on  our  note  at  60  ds.,  an  invoice 
of  Mdse.,  amounting  to  $300. 

Loaned  H.  C.  Petray,  $100. 
Deposited  $350  in  Bank  of  Oregon. 

4.  Sold  A.  F.  Wakeman  250;^  coffee,  @  18^;  10  boxes 
Malaga  raisins,  @  $2.75;  25  bbls.  flour,  @  $7;  rec'd  in  pay- 
ment, note  at  90  ds.,  for  $200  j — balance  on  acc't. 

Sold  M.  A.  Rouse,  60  boxes  No.  1  herring,  @  25^;  800;^ 
bacon,  @  18^;  30  bbls.  flour,  @  $7;  rec'd  in  payment,  our  note 
of  3d  inst.,  favor  W.  H.  Sumner,  for  $288  (face  of  note,  $300), 
and  an  order  on  K.  F.  Watkins,  for  balance. 

Paid  cash  for  drayage,  $3.75. 

Sold  E.  M.  Purinton  10  ;ff  tea,  @  70^  j  500  ;K  flour,  @  $3.50 
per  C;  200;^  potatoes,  @  IJ^;  10;^  syrup,  @  80^;  rec'd  in 
payment,  16;^  eggs,  @  40^; — cash  for  balance. 

Cash  sales,  $76. 

5.  Sold  J.  J.  Zielian,  on  <^,  20  doz.  2  j^  canned  pears,  @  $3j 
25  doz.  3  Ji^  canned  tomatoes,  @  $2.75. 

Returned  to  W.  H.  Sumner,  5  bbls.  white  fish,  @  $9,  and 
rec'd  cash  for  same. 

Sold  A.  K.  BaUou,  on  <^,  500;^  beans,  @  4^j  50  Iff  rice,  @ 
6i^;   100;^  salt,  @  2f 

A.  F.  Wakeman  returned  3  bbls.  flour,  @  $7. 

Cash  sales,  $86.50. 

6.  Deposited  in  Bank  of  Oregon,  cash,  $100. 

Bo't  of  V.  Domberger,  on  ^,  an  invoice  of  Mdse.  amount- 
ing to  $275. 

147 


EXERCISES  FOR  THE  STUDENT. 

Sold  E.  M.  Purinton,  on  <]^,  20  cases  French  mustard,  @  $2; 
20  doz.  pint  pickles,  @  $2.25. 

Eec'd  from  L.  Washburn  a  draft  on  Bank  of  Oregon  for 
$103.50,— $3.50  for  interest,  and  $100  in  part  payment  of  her 
note  of  1st  inst 

Deposited  this  draft  in  the  bank. 

Cash  sales,  $65. 

8.  Sold  J.  W.  Stirling,  on  <^,  40  boxes  soap,  @  $1.50j  25 
kegs  pickled  onions,  @  $4. 

Rec'd  from  A.  F.  Wakeman,  a  draft  on   Commercial  Bank, 
to  balance  her  account. 
Paid  for  insurance,  by  check  on  Bank  of  Oregon,  $16. 
Accepted  V.  Domberger's  draft  on  us,  at  30  ds.,  for  $175. 
Cash  sales,  $89. 

9.  Discounted  note  received  on  4th  inst.,  from  A.  V.  Wake- 
man,  and  rec'd  cash,  $190. 

Sold  J.  J.  Zielian,  on  %  2  casks  Zante  currants,  540  #,  @ 
10^  J  5  boxes  Fresno  raisins,  @  $2.75. 

Gave  our  clerk,  in  payment  of  salary  due,  an  order  on  £. 
M.  Purinton  for  $20. 

Deposited  $250  in  Bank  of  Oregon. 

Cash  sales,  $46. 

10.  Sold  Henry  Lawless,  on  ^jfc,  40  bbls.  flour,  @  $7. 

Rec'd  from  A.  K.  Ballon  a  postal  note  for  $20,  to  apply  to 
aec't. 

Bo't  of  E.  M.  AiJiiUh,  by  check  on  Bank  of  Oregon,  1,100  ^ 
dried  prunes,  @  10^. 

Sold  C.  F.  Donnelly,  10  kegs  syrup,  @  $3.75;  160  #  vinegar, 
@  40<?;  40  hams,  500  ;^,  @  18?;  rec'd  in  payment,  note  at  60 
ds.  for  $100; — cash  for  balance. 

11.  Rec*d  from  J.  W.  Stirling,  on  <jfc,  an  order  on  Chas. 
Smith  for  $75. 

Paid,  for  stamps  and  expressage,  $4.80. 

Sold  A.  K.  Ballow,  on  <5fr,  50  bottles  tomato  catsup,  @  25?; 
40  bottles  chow  chow,  @  20?. 

Bo't  of  C.  F.  Donnelly,  800  J^  dried  peaches,  @  15?;  gave  in 
part  payment,  her  note  of  10th  inst.,  for  $94  (face  of  note, 
$100); — ^balance  on  aec't. 

148 


EXERCISES  FOR  THE  STUDENT. 

Cash  sales,  $77. 

12.  Henry  Lawless  has  failed,  and  we  have  rec'd  a  draft  on. 
Commercial  Bank,  for  40%  ot  amount  due  us. 

Deposited  this  draft,  and  $75  in  coin,  in  Bank  of  Oregon. 

Sold  E.  M.  Purinton,  on  <%,  40  stone  jars,  @  $1.20  j  120  ;ff 
Java  coffee,  @  20^;  10  cases  kerosene,  @  $3;  200  j!f^  cheese, 
@  16f 

Sold  V.  Domberger,  on  ^Jfc,  1  set  dishes,  $18. 

Donated  cash,  $10,  for  church  purposes. 

Bo't  3  tickets  to  a  ball,  benefit  of  firemen's  fund,  and  paid 
cash,  $6. 

13.  Sold  M.  A.  Rouse,  on  ^,  100  sacks,  25  }^  each,  corn  meal, 
@  $1.20  per  sack. 

Sold  C.  F.  DonneUy,  on  %  SOO  J^  wheat,  @  $1.75  per  C; 
400  J^  potatoes,  @  2^. 

Sold  A.  K.  BaUou  SQO  J^  sugar,  @  12i^j  rec'd  cash,  $75;— 
balance  on  acc't. 

Cash  sales,  $105. 

14.  E.  M.  Purinton  reports  some  of  the  jars,  bo't  of  us  on 
12th  inst.,  to  be  of  an  inferior  quahty,  and  we  have  allowed 
her  a  discount  of  15%  on  amt.  of  bill  for  jars. 

Deposited,  in  Bank  of  Oregon,  cash,  $100. 
Rec'd  from  A.  K.  Ballou  a  P.  0.  order  to  balance  her  acc't. 
Student  has   taken   groceries   for  private   use,   amounting  to 
$67.50. 

15.  Took  an  inventory  and  found  Mdse.  on  hand  amounting 
to  $1400. 


KEY 


TO 


EXEECISES  FOR  THE  STUDENT. 


KEY  TO    EXEECISE8    FOB   THE    STUDENT. 
Pabt  L 

[No«.->A  "  Key"  to  the  exercises  has  been  added,  in  order  to  afford  the  student  reliable  check* 
OQ  the  outcome  of  his  work.  These  "  Closing  Statements,"  also,  will  relieve  the  teacher  from  the 
task  of  verifying  the  purely  arithmetical  part  of  the  work,  permitting  his  time  to  be  given, 
wholly,  to  the  book-keeping  proper  of  his  class.  In  these  statements  the  amounts  drawn  out  by 
the  proprietors  during  the  time  of  business  are  to  be  counted  in  reducing  net  capital  at  com* 
■lenoement.) 

CLOSING  STATEMENT,  Set  1. 


Resources. 
Personal  Acc'ts.    (Ledger), 

Cash 

Mdse.    (Inventory) 


145061 
954 
2360 


345916 


Liabilities. 
Personal  Acc'ts.     (Ledger).. . . 
lOl  W.  Megarry's  Present  Net  Cap. 


8560 


SS73 


3459 


56 


16 


Wm.  Megarry's  Present  Net  Capital,  S3S73.56 

••  "  Net  Investment,  3106.50 

Net  Gain,  <267.06 


CLOSING   STATEMENT,  Set  2. 


Resources. 
Personal  Acc'ts.     (Ledger), 

Bills  Receivable 

Cash 

Mdse.     (Inventory) 

Tools,  etc.     (Inventory) . . . 


177095 


294426 


Liabilities. 
Personal  Acc'ts.     (Ledger).. 


226  30|  Student's  Present  Net  Capital 

257 

390 

300 


125 

2819  SS 


2944 


25 


Student's  Present  Net  Capital,  $2819.25 
"         Net  Investment,  2150. 

"         Net  Gain,  %  669.25 


CLOSING  STATEMENT,  Set  3. 


Resources. 
Personal  Acc'ts.     (Ledger) . . . 

Cash 

Mdse.     (Inventory) 


2255 
56207 
250 


83462 


Liabilities. 
Personal  Acc'ts.    (Ledger). . . . 
Wm.  Bacon's  Present  Net  Cap, 


565 

82897 


83462 


Wm.  Bacon's  Present  Net  Capital,  $828,97 
"  "        Net  Investment,  800. 

Net  Gain,  >28.gT 

IfiS 


KEY  TO  EXEBCI8ES  FOR  THE  STUDENT. 

CLOSING  STATEMENT,  Set  4. 


Kbsoubcb. 

Aoo*ti.    (Ledser) . 
Bilk  R«eeivable  . . 

Cub 

Mdte.    (Inrentory) 


1611 
4900 


759976 


15 


31610 


71250  M.H, 


LlABILITIBS. 

PenonAl  Aco'U.    (Ledger) 

*#  Frt;  Net  Cap. 


44746 

716ft9 


759976 


Mwtiii  R.  Lawwn'a  rr««*Bt  N>t  Cftpftal.  ttllAM 

*     -        -      s«t  OidB,  f  a6a.» 


CLOSING  STATEMENT,  Set  5. 


Penooel  Aoc*ta.     (Ledger). 

CMh , 

BMik 

MdM.    (iBTCBtory) 


8467 
36166 
764 
900 


2130)55 


LiABiunn. 
Perwud  Aoc'U.     (Ledger)  . 
O.  W.  Congdon't  Prt».  Net  Cap. 


15960 


1971 


Ot 


213052 


G.  W.  OM^doD'a  Net  InTertnMDt,         t90M.9O 

••  PrMcnt  Net  C«pital.     1971.02 

Net  LoM.  I    06^ 


CLOSING  STATEMENT,  Set  G. 


RXSOUBOBS. 

PeiMiMl  Aec'te.    (Ledger). 

i^eah 

Bille  Receivable 

Mdee.     (Inventory) 

Real  EeUte,  Store 


925150 
2109|l3 

866 
5400 
4000 


1329963 


Liabilities. 
Persoual  Acc'ta.     (Ledger)  . 
CMpmand:Sear9'  Prt».  Net  Cap. 


426750 

9032  IS 


1329963 


■  }4  M«t  Gain, 
N«t  iBTcatment, 


(liipoMii  A  Se&n'  Preaent  Net  CapiUl,  t9032.13 
Net  Inrertment,  8621. 

••  "         Net  Gain,  I  411.ia 

t  i06.57  Wn.  H.  Smr*  14  Net  Gain,  t  ^206^ 

4296,26  ••      "        ••      Net  InTertment,  4326.76 


PreMnt  Net  CapiUl,  $«a00J2 


PrMtDt  Net  Capital,  >4631.31 


l.M 


KEY  TO  EXERCISES  FOR  THE  STUDENT, 
Part  II. 


CLOSING  STATEMENT,   Set  1. 


RESOURrKS. 

Cash  on  hand 

Bills  Receivable 

Mdse.,  as  per  Inventory 

LlABILITIKS. 

Personal  Accounts 

Student's  Capital  at  Commencement. 
Student's  Net  Gain 


1028331 
110 
675 


150551 
1550 

1S78\ 


171333 


171 


m 


CLOSING  STATEMENT,   Set  2. 


Resources. 

Cash  on  hand 

Bills  Receivable 

Personal  Accounts 

Mdse.,  as  per  Inventory 


Liabilities. 

Bills  Payable *. .  . 

Student's  Capital  at  Commencement. 
Student's  Net  Gain 


2876|46 

lIlS 
ff62rig0i 

I 

7312^ 
8705 
19187a 


1135495 


1135495 


CLOSING  STATEMENT,  Set  3. 


Resources. 

Cash  on  hand 

Bills  Receivable 

Personal  Accounts 

Mdse. ,  as  per  Inventory 


Liabilities. 

Bills  Payable 

A.  Cochrane's  Capital  at  Commencement. 
A.  Cochrane's  Net  Gain 


84415 
250 
285 
1750 


1476 
1550 

10466 


312955 


312955 


155 


KEY  TO  EXERCISES  FOR  THE  STUDENT. 
CLOSING  STATEMENT,  Set  4. 


Rboubcis. 

Caah  on  hand 

MdM.,  u  per  Inventory 

CoaU         ••  ••  

LiAmi.rriwi. 

Personal  Acoonnta 

Billa  Payable 

Stadent's  Capital  at  Commenoement. 
Stmdenft  Net  Gain 


2427 

4106 

26 

6179(^ 
610 
5150 


CLOSING  STATEMENT,  Set  5. 


RnoumcBB. 

Caah  on  hand 

Bills  Receivable. 

Mdse.,  as  per  Inventory 

Liabilities. 

Personal  Aooounta 

Billa  Payable 

Tyrrell  &  Co.'s  Capital  at  Commencement 
TrrrtU  A  Co:$  Ktt  Gain 


4240701 
200 


582521 
1346 
7845 

551^ 


CLOSING  STATEMENT,  Set  6. 


RESOCRCE.S. 

Cash  on  hand 

Bills  Receivable 

Mdae.,  as  per  Inventory 

Coal,     "  "        


LlABIUTIKS. 

Penonal  Accoonts 

Bills  Payable 

Williams  k,  Gibson's  Capital  at  Commencement. 

A.  S.   WiUiams'8  Net  Gain 

/.  E.  Gibson's  Net  Gain 


156 


267863 
74628 
1860 
18 


63251 
200 
4900 
69 


86 


7981 


5302  91 


KEY  TO  EXEECISES  FOR  THE  STUDENT 
CLOSING  STATEMENT,  Set  7. 


Resources. 

Cash  on  hand 

Bills  Receirable , 

Mdse.,  as  per  Inventory , 

Stationery,  as  per  Inventory 

Liabilities. 

Personal  Accounts 

Bills  Payable 

6.  A.  Mills's  Capital  at  Commencement. 
G.  A.  MiOs'a  Net  Gain 


239750 

1225 

1735 

12501 


472501 
2750 
2017 

1S0\ 


50 


5370 


5370 


CLOSING  STATEMENT,  Set  8. 


Resources. 

Cash  on  hand 

Personal  Accounts 

Bills  Receivable 

Mdse. ,  as  per  Inventory 

Store  (Real  Estate) 

Horse  and  Wagon 


Liabilities. 

Bills  Payable 

Frank  &  Co's  Cash  Capital  at  Commencement 

Moses  Frank's  i  Net  Gain 

Ed.  DinkelsjpieVs  \  Net  Gain 


kis: 

16( 

90 

3310 

2000 

220 


900 
19167 


5557 
5S58 


10174 


10174 


15 


15 


CLOSING  STATEMENT,  Set  9. 


Resource!. 

Cash  on  hand 

Mdse. ,  as  per  Inventory 

Horse  and  Wagon , 

Liabilities. 

Personal  Accounts 

Bills  Payable  

Student's  Capital  at  Commencement. 


Less  Student's  Net  Loss 


1£7 


1841501 
4460 
176 


1425061 
800 
5200 


742505 

94855 


647650 


647e 


KEY  TO  EXEECISE8  FOR  THE  STUDENT. 
CLOSING  STATEMENT,  Set  10. 


Rbodbcis. 

Cash  oo  hand 

•  "    in  Unk..  

BUk  Receivable  

Mdae.,  as  per  Inventory 

Hone  and  Wagon,  as  per  Inventory  . . . 

LlABUJTIKS. 

Personal  Acoounta 

Bills  Payable 

Stadedt's  Capital  at  Commwictinant.... 
Fred.  Child's  Capital  at  Commencement. 

Stmdenfi  i  Net  Gain 

Fred.  OkUtTi  ^  Ntt  0am 


275820 
340090 

226 
4130 

190 


II 

m'  839|35i 

,1240 

413146 

4183  96 

15468 

15462 


10704 


10 


10704 


10 


CLOSING  STATEMENT,  Set  1L 


Rbsourcis. 

Cash  on  hand 

"    in  bank 

Bills  Beoeivable 

Personal  Accounts 

Mdae. ,  as  per  Inventory 


LlABIUTUa. 

Bills  Payable 

Student's  Capital  at  Commencement. 
StMden^t  Net  0am 


63180 
166450 

250 

983301 
1400 


175 

1428250 

47£10 


4029  BO 


4929  BO 


UNIVERSITY  OF  CALIFOUNIA    LIHRARY 
BEHKELEY 

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